What a week! Was the sell-off earlier in the week a mirage? Friday's close made it seem that way.

Last week was quite a week; early in the week we saw a pretty ugly sell-off, but there were some buyers lurking at what appeared to be the bottom - for now, anyway. Friday's rebound on SPX did recover a lot of the losses from earlier in the week to close just slightly below the week prior.

Below is the status of our current open SPY Iron Condor for November:

The position summary is as follows:

SHORT November 200 Call.

LONG November 205 Call.

SHORT November 176 Put.

LONG November 171 Put.

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

SPY November Iron Condor

The position is currently +14 as of the close, and fairly well centered as we go into next week. 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:

SPY 6 month chart

Please note that I am now showing the 200 Day Moving average, as the break below it last week was a significant drop. SPY almost touched on it at the high of the day on Friday, but pulled back slightly to close at 188.47, up a little over 2 points from the previous day.

The six month chart of the VIX is below; Friday's market rally caused the volatility index to drop over 3 points, or -12.74%.

VIX chart:

Next week is the planned entry time for the RUT monthly Iron Butterfly for November. Depending on the market conditions, I will be recommending trade entry Tuesday or Wednesday. For those unfamiliar with the guidelines, they were re-published September 25, and that article can be found here:

Link to Articles

Next week is a fairly light week for economic news:


10:00 am Existing Home Sales


8:30 am Consumer Price Index

10:30 am EIA Petroleum Status Report


8:30 am Jobless Claims

9:45 am PMI Manufacturing Index


10:00 am New Home Sales

Position updates will be posted as appropriate.

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

Dot Hazlin