Attention Couch Potato Readers! It has been five years since we asked everyone for their input on the Couch Potato newsletter. A lot has changed in five years and we are asking everyone to take this short survey so we can provide the right kind of trades you are looking for and in the format you want. Do you want more trades, less trades, additional strategies, more frequent newsletters, different indexes or ETFs, etc. Please take a couple minutes and answer a few brief questions that will help us make the newsletter better. CLICK HERE TO TAKE SURVEY

If you have already submitted the survey, there is no need to take it again. Thank you for your participation!

New Trade Entry : XSP Iron Condor for September monthly cycle.

Below is the position entered a short while ago:

XSP Iron Condor Position Entered Tuesday, August 11, 38 days prior to expiration.

XSP Iron Condor position shortly after entry

Time of entry: 12:55 pm Eastern. XSP price: 193.47

Trade Details:

Call Spreads: -200/+205 Delta of short call .14 at time of entry.

Put Spreads: -183/+178. Delta of short put -.16 at the time of entry

Credit received: $.80, which is the minimum recommended credit for this strategy. My order sat as an open/working order for over 2 hours before it filled.

Maximum margin/risk is $420. Maximum risk is the width of the widest spread ($500 less credit received $80.)

Target Gain: $42 (10% of current margin).

Maximum Loss: $63 (15% of current margin).

Trade Management: The plan is to keep the position open until target gain or max loss is reached, with no adjustments. The position will be exited at either target gain or max loss, or if XSP reaches either short strike.

Having said that, it is a trader’s individual decision whether to wait for target gain, or max loss, on any position. Trading is a blend of one’s individual style, risk tolerance, and intuition. This combination can help reach your annual trade plan results. I recommend following your own trade style; there is nothing wrong with exiting a position early.

Below is the 6 month chart indicating the short strikes:

XSP 6 month chart:

I will post trade updates as appropriate.

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

Dot Hazlin