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 September 8 cycle. After reviewing potential setups this morning with the VIX back down 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 55 or 60 points between the two short strikes. The setup I was looking at would place the short call at 2500, and the short put at 2445. In my opinion, this is much too narrow, and too close on either side, at such low volatility levels.
There is also the added event risk with the three-day Holiday weekend.
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 risking hard-earned capital in what I see as a risky trade entry. 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.