Low premiums are keeping us on the sidelines for a new weekly trade entry today.
We are not recommending a trade entry today for the SPX weekly Iron Condor for the August 4 cycle. After reviewing potential setups this morning with the VIX currently well below 10 (dipped to a new low of 8.84 yesterday), I could not find a decent setup for what I consider a reasonable trade.
Of the numerous setups I looked at, in order to receive our minimum credit of $1.25 the play would only have 50 or 55 points between the two short strikes. This is much too narrow at such low volatility levels.
For those who may be disappointed, my apologies and of course traders may venture into their own trade if they choose to do so. In my opinion, it is not worth jeopardizing the favorable track record we have had this year for the weekly Iron Condor, as well putting our capital at risk. We will keep cash as our position and hope for an opportunity to enter next week.
If something rocks the market today or overnight and I see the VIX well above 10, I will look for a possible trade setup and post an update if there is anything reasonable.
As always, stay keen on your risk management and trade carefully.