What a week! Whatever sparked the sharp rally Friday afternoon was positive for the RUT position; but not so good for the weekly SPX Iron Condor.

Below is the status of our current open positions:

1) SPX Weekly Iron Condor

SPX closed Friday at 1982.85, up 17 points or .87%. The recovery wiped out about 1/2 of the drop from Thursday.

This week's SPX Iron Condor for the October 1 weekly cycle was filled for a net credit of $1.35 shortly after noon. The market ran up all afternoon into the close, but did manage to close off the high of the day (1986.37). The position summary is as follows:

SHORT October 1 2010 Call.

LONG October 1 2020 Call.

SHORT October 1 1920 Put.

LONG October 1 1910 Put.

Below is the risk graph of the current position as of the close Friday:

SPX October 1 Weekly Iron Condor

The position is currently -($62) as of the close. However, I did notice that the mid prices were very unstable the last hour, so I am not sure the current mid price of $2.00 is accurate. In any event, the position is in need of a slight pullback to benefit. The position will remain open until target gain is reached, but will be closed as per the guidelines if the pre-set max loss reaches ($85).

The chart below shows the short strikes:

SPX 6 month chart

2) RUT October Iron Butterfly

RUT closed Friday at 1119.33, up 9 points or .82%. This move was beneficial to the monthly position, but the RUT chart still looks pretty choppy to me so I'm not sure I trust the rally Friday.

RUT 6 month chart

Last week's volatility necessitated 2 downside adjustments on RUT; the current position summary is below:

SHORT RUT October 1160 Call.

LONG RUT October 1210 Call.

SHORT RUT October 1110 Put.

LONG RUT October 1060 Put.

Below is the risk graph of the current position as of the close Friday:

RUT October Iron Butterfly

The position is currently +$135; target gain remains at $250. If RUT reverses back down below 1110, the postion will be adjusted as I posted in my article Friday morning.

Next week brings a fair amount of economic news, so it is recommended to monitor the open positions closely :


8:30 am Personal Income and Outlays

10:00 am Pending Home Sales Index

10:30 am Dallas Fed Mfg. Survey


9:00 am Case Schiller HPI

9:45 am Chicago PMI

10:00 am Consumer Confidence


8:15 am ADP Employment Report

10:00 am ISM Manufacturing Index

10:00 am Construction Spending

10:30 am EIA Petroleum Status Report


8:30 am Jobless Claims

10:00 am Factory Orders


8:30 am Monthly Non Farms Payroll Report

Of all the news next week, the Friday morning employment situation report will be the most important. A new weekly trade entry will not be until Friday next week, after the market has digested the report.

Position updates will be posted as appropriate.

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

Dot Hazlin