A quiet end to the trading week as the market finishes its best quarter in 4 years.
The broad market closed slightly lower Friday, but managed to post the best quarter in four years. The benchmark index SPX closed down -5.34 points at 2362.72. Friday's close represented a gain of +5.5% for the quarter, the best since the first three months of 2013.
Below is the open position status:
SPX Weekly Iron Condor for April 7
This position was opened Thursday, March 30; details below:
SOLD SPX April 7 2395 Call, 1.25 credit.
BOUGHT SPX April 7 2405 Call, .70 debit.
SOLD SPX April 7 2320 Put, 2.70 credit.
BOUGHT SPX April 7 2310 Put, 1.95 debit.
Order was filled as an "Iron Condor" for $1.30 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: $870.
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 April 7 Iron Condor:
The position is showing a gain of +$45 as of the close; the debit to exit is $.85. Our order remains in place to exit for target gain when the debit reaches $.70, or if the max loss reaches 10%. It is, however, recommended to exit the position regardless prior to the release of the FOMC minutes Wednesday afternoon. While there are no surprises expected, this news can sometimes create market volatility that could go against our position with little time to recover.
Below is the SPX chart indicating the short strikes:
SPX 6 month chart
Next week's economic news is summarized below:
9:45 pm China Manufacturing PMI
9:45 am PMI Manufacturing Index
10:00 am ISM Manufacturing Index
10:00 am Construction Spending
8:30 am International Trade
10:00 am Factory Orders
8:15 am ADP Employment Report
10:00 am ISM Non-Manufacturing Index
10:30 am EIA Petroleum Status Report
2:00 pm FOMC Minutes
8:30 am Jobless Claims
8:30 am Employment Situation Report
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,