SPX Weekly Iron Condor Test position for July weekly Cycle (which is the regular July monthly cycle).
Yesterday was quite a wild ride; a combination of poor economic reports from Asia & Europe, along with a banking crisis in Portugal caused indices across the board to drop significantly. SPX reached near-term support at the low of 1952.86, and began to recover from there to close at 1964.68. The market appears to be relatively flat today, at least at the moment. I want to continue with the test kitchen weekly Iron Condor, so did open a position today.
Below is the position opened a short while ago:
SPX Weekly Iron Condor:
The strikes for this week's test (Paper Money) position are:
Calls: -1990/+2000. Delta of short call .10
Puts: -1920/+1910. Delta of short put -.12
Below is the SPX chart showing the short strikes:
SPX 6 month chart
Credit received: $1.25, which is the minimum credit recommended for this strategy. SPX was at 1963.85, and VIX at 12.24 when the trade was entered.
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.
As always, stay keen on your risk management and trade carefully,