The volatility roller coaster continues; is the timing right for a new weekly trade?
Yesterday the ride continued, in the opposite direction from Wednesday's move. SPX dropped 2% yesterday to close at 1928.21. As of this writing, futures appear to be coming off the lows of earlier; currently down just over 4 points. However, I don't feel confident that today will be a calm day; there are still several Fed speakers that could shake things up. The economic schedule for today is:
8:30 am Import and Export Prices
9:00 am Charles Plosser Speaks
1:00 pm Esther George Speaks
1:30 pm Richard Fisher Speaks
The chart below tells the story how we continue to ride the volatility waves; so I don't know yet if the timing is right for a new non-directional, short term trade such as the weekly Iron Condor.
SPX 6 month chart:
If the market appears to be settled by late this afternoon, I will be recommending a new weekly Iron Condor position for the October weekly cycle. But I caution anyone entering the position to 1) consider paper trading this week rather than a live trade, or 2) trade a much smaller size than usual.
I will wait until much later in the day before submitting an order; and will post an update at that time.
For those unfamiliar with the strategy, the trade management guidelines were updated on August 7, and can be found here:
Link to Articles
As always, stay keen on your risk management and trade carefully,