Is the "correction" over? It appears that the bulls have regained control, putting the May SPY Iron Condor just 4 points from the short call strike.
The shortened trading week ended Thursday with a continued rally off the lows a week ago. The chart below illustrates the strength of the rally better than words can describe:
SPY 6 month Chart:
The May Iron Condor position is shown below as of the close Thursday:
SPY May Iron Condor
SPY's closing Thursday at 186.39 put our short call strike of 190 just four points away. The short is slightly above the all-time high of 189.70 reached on April 4, so there is still a chance the upwards movement could slow down as this level creeps closer. This position will remain open for the time being; the exit is planned at target gain, max loss, or either short strike.
An update on this position will be posted early next week. Also, as of now I am being somewhat "hopeful" that the market may be returning to a level where I feel comfortable entering a weekly SPX credit spread towards the end of next week. However, it is way too early to make that definitive decision. As we've seen way too often recently, huge intra-day moves have been occurring on a regular basis which could knock us out of a short term position very quickly. I recommend that any of you who follow or trade the weekly credit spread continue to work on your patience; let's see how next week sets up for a possible trade entry.
Stay keen on your risk management and trade carefully,