Monthly Iron Condor Results: SPY and IWM

Shortly after my post Friday afternoon recommending that the June SPY Iron Condor be closed, my exit order filled for a debit of .43. This represented a gain of $38, or 9.1% of the actual margin/risk. After only 10 days in the trade, it was well worth taking just shy of the 10% target to exit before the long weekend.

For those of you who have been following or trading the monthly Iron Condor, I began trading this strategy back in October, 2013 at the request of some subscribers for a monthly position on an ETF. After trading IWM for 6 months, the results were less than stellar, so I switched to SPY in April. I am posting the summary of IWM and SPY results below:

Iron Condor Results

We only have a 3 month track record on SPY compared to 6 months on IWM, so it is too early to tell whether SPY may be the better vehicle for this no-touch strategy. Or, the market may just be in a better trading range for the Iron Condor the last 3 months. In looking at the 6 month charts for both IWM and SPY, they are very similar which is not surprising. However, it is obvious from the charts that in recent weeks IWM has had more volatility than SPY.

IWM 6 month chart

SPY 6 month chart

For time time being, I will continue to trade the monthly Iron Condor in SPY, entering approximately 38 days prior to expiration. I will compare and post results when I have an equal sample of both vehicles for 6 months.

I am "hopeful" the market will be at a level where I feel the SPX weekly credit spread can be entered soon. With SPX closing at record highs Friday on such low volume, anything can happen when the market opens Tuesday. I will see how things settle by mid-week and post my thoughts on a new weekly trade entry.

As always, stay keen on your risk management and trade carefully,

Dot Hazlin