A little slide into the close yesterday, but the overall market held onto modest weekly gains.
The broad market closed slightly lower yesterday as investors digested the overflow of news for the week, including the Fed announcing the much-expected interest rate hike in March. The benchmark index SPX fell 3.13 points late in the day to close at 2378.25, but managed a +.2% gain for the week.
Below is the open position status:
SPX Weekly Iron Condor for March 24
This position was opened Friday, March 17; details below:
SOLD SPX March 24 2405 Call, 1.58 credit.
BOUGHT SPX March 24 2415 Call, .68 debit.
SOLD SPX March 24 2340 Put, 1.80 credit.
BOUGHT SPX March 24 2330 Put, 1.45 debit.
Order was filled as an "Iron Condor" for $1.25 net credit (all four legs).
I know of a few subscribers who were able to get the position filled at $1.30; I caved $.05 fairly soon after entering the order to insure a fill.
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 March 24 Iron Condor:
Our position is currently showing a gain of $5, the debit to exit is $1.20. Our orders remain in place to exit for target gain when the debit reaches $.65, or if the max loss reaches 10%.
Below is the SPX chart indicating the short strikes:
SPX 6 month chart
SPY April Iron Condor
This monthly position was opened on Monday, March 13. Position details are below:
- SOLD SPY April 243 Call, .54 credit.
- BOUGHT SPY April 248 Call, .08 debit.
- SOLD SPY April 228 Put, .98 credit.
-BOUGHT SPY April 223 Put, .61 debit.
Order was filled as an "Iron Condor" for $.83 net credit (all four legs) .
Margin/Risk is calculated by the width of the wings ($500), less credit received.
Margin/Risk for this trade: $417.
Target Gain: 10%of margin/risk.
Max loss: 15% of margin/risk.
Below is the risk graph of the position as of the close Friday:
SPY April Iron Condor:
SPY closed Friday at 237.03; our position is currently showing a gain of $17. Our order remains in place to exit when the debit reaches $.41 which would be target gain; or if the max loss reaches 15%.
Below is the SPY chart showing the short strikes:
SPY 6 month chart
The guidelines call for the position to remain open until target gain is reached, as long as SPY stays between the short strikes. They also call for exiting at the pre-set max loss, or if SPY reaches either short strike. It is recommended to have a "good to cancel" conditional order in to exit the position for target gain or max loss. Please follow your broker's specific guidelines on the setup of conditional orders as they can vary by broker.
Next week's economic news is summarized below:
1:10 pm Fed's Charles Evans speaks
12:00 pm Fed's Esther George speaks
10:00 am Existing Home Sales
10:30 am EIA Petroleum Status Report
8:00 am Fed Chair Janet Yellen speaks
8:30 am Jobless Claims
10:00 am New Home Sales
12:00 pm Fed's Neel Kashkari speaks
8:00 am Fed's Charles Evans speaks
8:05 am Fed's James Bullard speaks
8:30 am Durable Goods Orders
8:30 am Fed's John Williams speaks
Next week is the planned entry for the RUT April monthly Iron Butterfly. We will plan to enter the position early next week, depending on overall market conditions and available credit.
For those unfamiliar with the strategies we trade, the trade management guidelines for all the Couch Potato Trader plays can be found here:
Link to Articles
Trade updates will be posted as appropriate.
As always, stay keen on your risk management and trade carefully,