Hovering at new highs once again, can the bulls continue their stampede?
The broad market closed higher Friday, powered by a better-than-expected January jobs report. The bullish sentiment was also fueled by actions from President Trump to roll back bank regulations. The benchmark index SPX closed up 16.57 points at 2297.42, or .7%. This represented a weekly gain of .1%.
Below is the open position status:
SPX Weekly Iron Condor for February 10 cycle.
This position was opened Friday, February 3; details below:
SOLD SPX February 10 2315 Call, 1.40 credit.
BOUGHT SPX February 10 2325 Call, .70 debit.
SOLD SPX February 10 2250 Put, 2.30 credit.
BOUGHT SPX February 10 2240 Put, 1.75 debit.
Order was filled as an "Iron Condor" for $1.25 net credit (all four legs).
Margin/Risk is calculated by the width of the wings ($1,000), less credit received.
Margin/Risk for this week's trade: $875.
Target Gain: 7% of margin/risk or $60.
Max loss: 10% of margin/risk or $85.
Below is the risk graph as of the close Friday:
SPX February 10 Weekly Iron Condor:
Think or Swim is currently showing the position +$10, the current debit to exit is $1.15. The position is very short delta so would benefit from a pullback early next week. Our order remains in place to exit when the debit reaches $.65 which would be target gain. The position will also be closed if it reaches the max loss of 10%.
Below is the SPX chart showing the short strikes:
SPX 6 month chart
Next week's economic news is highlighted below:
8:30 am International Trade
10:30 am EIA Petroleum Status Report
Tentative EU Membership Vote
8:30 am Jobless Claims
9:10 am Fed's James Bullard speaks
1:10 pm Fed's Charles Evans speaks
7:30 am Fed's Stanley Fischer speaks
8:30 am Import/Export prices
10:00 am Consumer Sentiment
Next week is the planned entry for the SPY March Iron Condor. Depending on market conditions and available credit, we will look to open this position sometime early next week.
Trade updates will be posted as appropriate.
As always, stay keen on your risk management and trade carefully,