What a week! The market decline accelerated Friday; SPX suffered the worse weekly decline since 2012.

Friday continued with a follow-through of Thursday's drop; SPX fell 22 points, or -1.1%, to close at 1906 just above what I hope is support at 1900. Coinciding with the market dropping, the volatility index VIX popped up 2.48 points, up 13.2%, to close at 21.24.

Below is the status of the current open SPX weekly Iron Condor:

This week's SPX Iron Condor for the October cycle was filled for a net credit of $1.30 just before 2:00 pm est. The position summary is as follows:

SHORT October 1980 Call.

LONG October 1990 Call.

SHORT October 1855 Put.

LONG October 1845 Put.

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

SPX October Weekly Iron Condor

The position is currently -($20) as of the close. The position is slightly long delta; it will benefit from a "gentle" move up, along with a drop in volatility. 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

The one year chart of the VIX is below; Friday's pop touched the level we saw back in February.

VIX one year chart:

Next week brings a fair amount of economic news starting mid-week:


Columbus Day US Holiday; stock market open; bonds closed.

12:30 pm Fed. Charles Evans speaks


8:30 am Producer Price Index

8:30 am Retail Sales

8:30 am Empire State Manufacturing Survey

10:00 am Business Inventories

2:00 pm Beige Book


8:30 am Jobless Claims

9:15 am Industrial Production

10:00 am Philadelphia Fed Survey

10:00 am Housing Market Index

11:00 am EIA Petroleum Status Report

12:15 pm Fed. Esther George speaks

1:00 pm Fed. James Bullard speaks

2:30 pm Fed. Narayana Kocherlakota speaks


8:30 am Housing Starts

9:55 am Consumer Sentiment

Position updates will be posted as appropriate.

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

Dot Hazlin