Low premiums are keeping us on the sidelines for a new weekly trade entry today.
We are not recommending a trade entry this week for the SPX weekly Iron Condor for the August 11 cycle. After reviewing potential setups this morning with the VIX still hovering around 10, 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, and the short call strike would need to be at 2495. This is much too narrow, and too close on the call side, 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.
As always, stay keen on your risk management and trade carefully.