Despite a bit of selling Friday afternoon, major indices booked the largest monthly gain since October 2011.
Friday was a relatively quiet trading day with low volume; the bulls took a bit of a break on the last trading day of the month. Despite the dip in the afternoon, SPX managed to post the largest monthly gain since October 2011, up 5.9% in February.
Below is the current open position status:
SPX Weekly Iron Condor
This March 1 weekly position was opened Friday; trade details are:
- SOLD SPX March 1 2140 Call, 1.15 Credit.
- BOUGHT SPX March 1 2150 Call, .45 Debit.
- SOLD SPX March 1 2065 Put, 2.15 Credit.
- BOUGHT SPX March 1 2055 Put, 1.55 Debit.
Order was filled as an "Iron Condor" for $1.30 net credit (all four legs).
Margin/Risk is calculated by the width of the wings ($1,000), less credit received.
Margin/Risk for this week's trade: $870.
Target Gain: 7% of margin/risk or $60.
Max loss: 10% of margin/risk or $87.
SPX was at 2109.77 when the order executed; the close at 2104.50 put the position nicely centered going into next week.
SPX March 1 Weekly Iron Condor
The position ended up $40; the current debit to close the position is $.90, just .20 away from the target exit debit of $.70.
The SPX chart is below showing the short strikes:
SPX 6 month chart
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
Yesterday's pullback helped the position a bit, it is currently +$31 as of the close. The short call strike at 214 is just 4 points away, so the position would benefit from a further 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.
I wanted to let subscribers know that I will be travelling next Wednesday, March 4, and will not have access to the internet. Conditional orders will be in for both open positions. If any orders are triggered and executed, I will post the details on Thursday.
Next week brings a fair amount of economic news, including the monthly Employment Situation report on Friday. A recap is below:
8:30 am Personal Income & Outlays
9:45 am PMI Manufacturing Index
10:00 am ISM Manufacturing Index
10:00 am Construction Spending
8:15 am ADP Employment Report
10:00 am ISM Non Manufacturing Index
10:30 am EIA Petroleum Status Report
2:00 pm Beige Book
8:30 am Jobless Claims
8:30 am Productivity & Costs
10:00 am Factory Orders
8:30 am Monthly Employment Situation Report
8:30 am International Trade
Position updates will be posted as appropriate.
As always, stay keen on your risk management and trade carefully,