My "learning moment" from last week's position taught me to take gains when presented; SPX Credit Spread for this week was closed only 5 hours after entry.
For those who followed the SPX Call Credit Spread position for last week, you may recall I could have taken off the position for close to target gain on Friday, eliminating the weekend risk. However I did not, and the position was closed at breakeven on Tuesday.
This week's position, the Put Credit Spread, was entered Friday at 10:40 am. A few moments before the close, I was able to buy back the spread for .30, which resulted in a net gain after commissions of $66, just shy of our $75 target. This represents a 7.3% gain on actual margin/risk. I always recommend consideration be given to closing a position for less than target to eliminate the weekend risk; and this week I heeded my own recommendation.
For those of you who may not have closed the position, the graph below illustrates the spread as of the close on Friday:
SPX July 2 Put Credit Spread shortly as of the close Friday:
There will not be a new trade entry next week until Thursday, July 11. Minutes of the recent FOMC meeting are being released at 2 pm Est., and Chairman Ben Bernanke is speaking after the close on Wednesday. This makes me very cautious about entering prior to these events to avoid the risk of a potential big market move.
If market conditions are favorable, a Credit Spread as well as Iron Condor will be entered Thursday and/or Friday for the next week's cycle.
As always, stay keen on your risk management and trade carefully,