News of a debt deal in Greece sent markets soaring once again into the week's close.

The eurozone approved a four month extension on Greek's debt bailout Friday afternoon, subject to certain conditions which must be submitted in a report Monday. The trading day was quiet until the news was released early afternoon; the bears then went running for cover. The deal is not yet sealed, however, so the drama will continue next week. Greece must submit a list of budgetary measures, which will be assessed in a call Tuesday evening by the Finance Ministers.

The relentless "grinding up" of the market is not kind for our non-directional strategies such as the Iron Condor. However, we will continue to trade the plan and manage positions according to the guidelines.

Below is the current position status:

SPY March Iron Condor

The SPY monthly Iron Condor for March was opened Monday, February 9. Position details are:

- SOLD SPY March 214 Calls.

- BOUGHT SPY March 219 Calls.

- SOLD SPY March 191 Puts.

- BOUGHT SPY March 186 Puts.

Order was filled as an "Iron Condor" for $.92 net credit (all four legs).

The risk graph as of the close Friday is below:

SPY March Iron Condor

The SPY 6 month chart showing the short strikes is below:

SPY 6 month chart

The position is currently (-$21) as of the close. The short call strike at 214 is just 3 points away, so the position will definitely benefit from a pullback. Target gain remains at 10% of margin, max loss 15% of margin.

Margin/Risk is calculated by the width of the wings ($500), less credit received. Margin/Risk for this trade: $408.

RUT March Iron Butterfly

The RUT March Iron Butterfly was opened Tuesday, February 17, as follows:

- SOLD RUT March 1220 Calls, $25.80 Credit.

- BOUGHT RUT March 1270 Calls, $4.80 Debit.

- SOLD RUT March 1220 Puts, $22.90 Credit.

- BOUGHT March 1170 Puts, $9.60 Debit.

Order was filled as an "Iron Condor" for $34.30 net credit (all four legs).

BOUGHT RUT March 1300 Call.

Call order was filled for $1.40 debit

Friday RUT closed at 1231, hovering at the upside adjustment trigger point. However, as the risk graph indicates, the expiration breakeven on the upside is 1253, and 1187 on the downside. The risk graph of the position is below:

RUT March Iron Butterfly

The position is currently +$94 as of the close Friday. I did not see the need to adjust the position on Friday with such a news-driven move. If RUT continues to move up early next week, the call side may be rolled up as per the guidelines. This will depend on the position status and overall market conditions.

For those unfamiliar with the strategy, the trade management guidelines were updated on October 22, 2014, and can be found here: Link to Articles

Next week brings a fair amount of economic news; a recap is below:


10:00 am Existing Home Sales

10:30 am Dallas Fed Manufacturing Survey


9:00 am S & P Case Shiller Home Price Index

10:00 am Consumer Confidence

10:00 am Janet Yellen speaks


10:00 am New Home Sales

10:00 am Janet Yellen speaks

10:30 am EIA Petroleum Status Report


8:30 am Jobless Claims

8:30 am Consumer Price Index

8:30 am Durable Goods Orders


8:30 am GDP

9:45 am Chicago PMI

10:00 am Consumer Sentiment

10:00 am Pending Home Sales

In closing, for those of you who may not be aware of the latest developments at the CBOE, beginning March 9 SPX options will have extended trading hours. The article can be found at this link:

CBOE Article

Depending on what time zone you live in, the effect of these extended hours will vary by location. If this change affects anyone's ability to monitor the weekly position during the extended trading hours, it is recommended to always have contingent orders in place if you do not already manage your trade in this manner.

I would suspect that volume will be light during these extended trading hours, at least to start. So at the moment I will continue with the weekly SPX Iron Condor, with contingent orders always in place, and have the "wait an see" how this will affect the weekly trade plan. If anyone has additional thoughts and comments regarding these extended trading hours, your emails are always welcome.

Position updates will be posted as appropriate.

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

Dot Hazlin