Politics are keeping us on the sidelines for a new weekly trade entry today.
As I've mentioned previously, there are some weeks where I do not feel comfortable entering a new weekly position. With the budget deadline looming, I feel this is one of the weeks that I prefer to sit on the sidelines and hold my position in cash. I will not be entering a new SPX Iron Condor for the October 1 cycle. For those of you who may still enter the position, I would suggest that you reduce your trade size, and considering selling a lower delta to give a wider tent to withstand market movement.
Some of the market analysts report that the debt ceiling issue has already been factored into the recent market moves, but being the conservative trader that I am, I prefer to see how things settle before entering a new weekly position.
With regards to the October IWM Iron Condor, the trigger for adjustment is if IWM reaches 108, one point before the short strike. The recommended adjustment is to roll up the call spreads three points for a debit. At this point, it is a trader's choice whether to 1) increase the position size by up to 50% to gain additional credit, or 2) roll up the put spreads 3 points for a credit.
I will post an update on the IWM position over the weekend, or earlier if the adjustment is triggered.
As always, stay keen on your risk management and trade carefully,