Is the selloff over? Not so sure, waiting another day before entering the May SPY Iron Condor.
I mentioned in my weekend update that I was waiting to see how the market settled, or recovered, before entering the SPY Iron Condor for May. Earlier this morning it appeared that the bulls were attempting to gain control. However, as of this writing, the market is slightly down again. After the last two days, it's anyone's guess how this day will play out.
After looking at potential setups for the May Iron Condor, and the economic calendar for tomorrow, I have decided to wait at least one more day before entering this monthly position. Tomorrow at 2 pm brings the release of the FOMC minutes from the last meeting. While there will not be any real "new" news, the minutes will be carefully scrutinized by investors to seek further clues on the pending QE tapering plan.
I just feel it's too risky to enter a non-directional strategy such as the Iron Condor until those minutes are digested. If things remain calm and the news doesn't shake things up, I will look at entering the position tomorrow afternoon. The trade setup will be the same as I posted over the weekend. The only difference may be a slightly less credit for the position because of the later entry. I would rather give up .05 or so credit than having to sell closer to the money.
I will post entry details when the position is opened.
As always, trade carefully and stay keen on your risk management.