Another week, another record closing.

I am sounding like a broken record; but the broad market continued its march higher Friday to yet another record closing. Friday's gains were fueled by continued positive earnings reports with AAPL on deck, as well as the October jobs report. The US added 261,000 jobs in October, less than expected, but nonetheless the market was happy.

The benchmark index SPX closed up +7.99 points at 2587.84, an increase of .31%. A new intra-day high was reached of 2588.42, but SPX dropped back just slightly into the close.

SPX 6 month chart

Volatility remains at record lows, the VIX closed yesterday at 9.18, -.79 points or 7.96%.

VIX 6 month chart

Below is the open position status:

SPY Monthly Iron Condor for November

This position was opened on Monday October 9; details below:

- SOLD SPY November 259 Call, .67 credit.

- BOUGHT SPY November 264 Call, .13 debit.

- SOLD SPY November 247 Put, 1.00 credit.

- BOUGHT SPY November 242 Put, .65 debit.

Order was filled as an "Iron Condor" for $.89 net credit (all four legs) .

Margin/Risk is calculated by the width of the wings ($500), less credit received.

Margin/Risk for this trade: $411.

Target Gain: 10% of margin/risk.

Max loss: 15% of margin/risk.

Below is the risk graph of the position as of the close Friday:

SPY November Iron Condor:

SPY closed Friday at 258.45, the relentless rally has put the trade under water; it is currently -11, and less than a point from the short strike. With any help from the market, we will get a pullback next week which will help the position.

Below is the SPY chart showing the short strikes:

SPY 6 month chart

Trade Management:

The guidelines call for the position to remain open until target gain is reached, as long as SPY stays between the short strikes. They also call for exiting at the pre-set max loss, or if SPY reaches either short strike. It is recommended to have a "good to cancel" conditional order in to exit the position for target gain or max loss. Please follow your broker's specific guidelines on the setup of conditional orders as they can vary by broker.

New "Test Kitchen" RUT Put Credit Spread for December 15

This new trade we are testing was opened Tuesday, October 10; details below:

SOLD RUT December 15 1400 Put, 9.80 credit.

BOUGHT RUT December 15 1370 Put, 7.20 debit.

Order was filled as an "Iron Condor" for $2.65 net credit (all four legs).

Margin/Risk is calculated by the width of the wings ($3,000), less credit received.

Margin/Risk for this week's trade: $2,735.

Think or Swim is currently showing the position +$79. We will likely add this play to the regular portfolio with the next entry in November.

Below is the risk graph of this week's position as of the close:

RUT December 15 Put Credit Spread:

Below is the RUT chart showing the short strike:

RUT 6 month chart

Trade Management:

The trade is left in play to work until:

1) If the loss reaches $250, the position is closed.

2) When the next monthly cycle is at the 65 days to expiration window, the position is closed, which would be approximately November 14.

VXX Weekly Call Spread for November 10 expiration

This weekly position was opened on November 3; details below:

SOLD VXX November 10 36 Call, .41 credit.

BOUGHT VXX November 10 41 Call,.14 debit.

Order was filled as a "Vertical" for $.27 net credit (all four legs).

Margin/Risk is calculated by the width of the wings ($500), less credit received.

Margin/Risk for this week's trade: $473.

Trade Management:

- Target Gain: Please note: After analyzing the trade this morning, I feel that I want to be even more conservative than the original 5% target gain. Since volatility-based trades can go against us very quickly, a modest 3% gain may be more appropriate, and am suggesting those in the position revise their target gain accordingly.

- Max Loss: 6% of margin (revised from original guidelines of 8%).

Below is the risk graph of this week's position as shown on my broker's platform:

VXX November 10 Call Credit Spread:

Think or Swim is showing the position +2 at the close.

Below is the VXX chart showing the short strike:

VXX 6 month chart

Next week's economic news, is summarized below:

Monday, November 6

No Reports Monday or Tuesday

Wednesday

10:30 am EIA Petroleum Status Report

Thursday

8:30 am Jobless Claims

Friday

10:00 am Consumer Sentiment

Next week is the planned entry for the December SPY Iron Condor. Monday will be 39 days to expiration, so we will look to enter sometime next depending on overall market conditions and available credit.

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,

Dot Hazlin