SPX Weekly Iron Condor Test position for July 1 Cycle.
Below is the position opened a short while ago:
SPX July 1 Weekly Iron Condor:
The strikes for this week's test (Paper Money) position are:
Calls: -1980/+1990. Delta of short call .09
While the short call delta is within the guidelines, it is a little close to the fire for my comfort level. However, since the intent of paper trading this strategy is to test in a variety of market conditions, I did place the short call at the 1980 strike.
Puts: -1915/+1905. Delta of short put -.11
Below is the SPX chart showing the short strikes:
SPX 6 month chart
Credit available as of today: $1.05. The minimum credit according to the guidelines is $1.25. The phrase "when the VIX is low, it's time to go" has been used over and over again, but worth mentioning once again. I apologize for continuing to repeat this, but with the VIX hovering just under 12 as of this writing, it is very difficult for option premium sellers to obtain a fair premium for an acceptable risk in capital.
I would not enter this as a live position with the VIX at these lows; I personally do not feel it is worth the risk without getting at least $1.25. I will continue to paper trade this until the volatility increases so we can get an acceptable credit for a short delta of approximately .10.
VIX 5 Year Weekly
Target gain: 7% of margin/risk
Max loss: 10% of margin/risk.
This position will remain open until target gain is reached, as long as SPX stays between the short strikes. It will be exited at the pre-set max loss, or if SPX reaches either short strike.
In closing, I want to stress again that it is NOT recommended to place this trade live yet. Some traders may choose to trade this live even though the credit is not at an acceptable level, at least not in my comfort zone. I will be waiting until I can get $1.25 before risking live capital.
As always, stay keen on your risk management and trade carefully,