It was a strong week for the market overall; SPX managed to gain 1.7% last week, the second consecutive weekly gain.
Below is the current open position status:
SPX Weekly Iron Condor
This April weekly position was opened Friday; trade details are:
SOLD SPX April 2125 Calls, credit $.90. Delta of short call: .10.
BOUGHT SPX April 2135 Calls, debit $.25.
SOLD SPX April 2050 Puts, credit 2.00. Delta of short put: -.12.
BOUGHT SPX April 2040 Puts, 1.30 debit.
Order was filled as an "Iron Condor" for $1.35 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: $865.
Target Gain: 7% of margin/risk or $60.
Max loss: 10% of margin/risk or $87.
The risk graph showing the position as of the close is below:
SPX April Weekly Iron Condor
SPX closed Friday at 2102, up 11 points or .53%. The position is currently +$10. Our exit order remains in place to close the position when the debit reaches $.75, which would be target gain. The position will be closed at target gain, or if the pre-set max loss of 10% is reached.
Below is the 6 month chart showing the short strikes:
SPX 6 month chart
SPY May Iron Condor
This monthly position was entered Monday April 6. The position summary is:
- SOLD SPY May 215 Calls, currently $.54.
- BOUGHT SPY May 220 Calls, currently $.06.
- SOLD SPY May 197 Puts, currently $1.15.
- BOUGHT SPY May 192 Puts, currently $.64
Order was filled as an "Iron Condor" for $.99 net credit (all four legs).
Margin/Risk is calculated by the width of the wings ($500), less credit received.
Margin/Risk for this trade: $401.
Target Gain: 10%of margin/risk.
Max loss: 15% of margin/risk.
Below is the risk graph of this week's position as of the close Friday:
SPY May Iron Condor:
SPY closed Friday at $210.04. The position is currently +$13; so we will let theta work as long as the SPY stays within the trade guidelines.
Below is the SPY chart showing the short strikes:
SPY 6 month chart
Next week brings a fair amount of economic news; a recap is below:
8:30 am Producer Price Index
8:30 am Retail Sales
10:00 am Business Inventories
8:30 am Empire State Manufacturing Index
9:15 am Industrial Production
10:00 am Housing Market Index
10:30 am EIA Petroleum Status Report
2:00 pm Beige Book
4:00 pm Treasury International Capital
8:30 am Jobless Claims
8:30 am Housing Starts
10:00 am Philadelphia Fed Business Outlook
8:30 am Consumer Price Index
10:00 am Consumer Sentiment
Next week is the planned entry for the RUT Iron Butterfly for the May monthly cycle. Monday will be 32 days to expiration; so we will plan to enter the position sometime next week depending on market conditions and available credit.
For those unfamiliar with the strategy, the trade management guidelines were updated on October 22, 2014, and can be found here:
Link to Articles
As always, stay keen on your risk management and trade carefully,