"When the VIX is high, it's time to buy (or sell in the case of the weekly Iron Condor); when it's low, it's time to go".
Yesterday we held off entering the SPX Weekly Iron Condor for the May 5 cycle because of the low VIX level, and not being able to get wide enough between the two short strikes to take on the risk.
This morning is not much better - the VIX is still hovering around 10. I looked at numerous trade setups for entry, as I know some subscribers look forward to a trade entry every week. The best setup I could find was to place the short strikes of the position at the 2415 call, and the 2355 put. This is not an ideal setup with the record-low volatility levels, as there is only 60 points between the short strikes. Even being only 60 points wide, the trade is only showing a credit of $1.25, which is our minimum for entry and I'm not sure that would fill.
It would not take much of an event over the weekend to put the position in serious jeopardy on Monday. Rather than risk our track record for this year, I am not going to recommend a trade entry for today. We have had 11 wins and 2 losses so far this year, and our average gain is 4.3% per week including the losses and the 3 weeks skipped because of unfavorable market conditions.
For those who may be disappointed, my apologies and of course traders may venture into into own trade if they choose to do so. But for the benefit of the Couch Potato Trader trade plan and our annual goals, consider taking the "gift" of staying in cash this week and waiting for a better entry next week.
As always, stay keen on your risk management and trade carefully.