Better-than-expected earnings propelled the broad market to close at record levels yesterday.

SPX rose to close yesterday at 2117.69, up .23% which topped the previous close back on March 2 by a few cents. The index recorded a solid gain for the week, +1.8%.

Below is the current open position status:

SPX Weekly Iron Condor

This May 1 weekly position was opened Friday; trade details are:

- SOLD SPX May 1 2145 Call, $1.35.

- BOUGHT SPX May 1 2155 Call $.60.

- SOLD SPX May 1 2070 Put, $2.95.

- BOUGHT SPX May 1 2060 Puts, $2.05.

Order was filled as an "Iron Condor" for $1.65 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: $835.

Target Gain: 7% of margin/risk or $58.

Max loss: 10% of margin/risk or $84.

The risk graph showing the position as of the close is below:

SPX May 1 Weekly Iron Condor

As of the close, the position is currently +$15. Our exit order remains in place to close the position if the debit reaches $1.05, which would be target gain. The position will be closed at target gain, or if the pre-set max loss of 10% is reached. This week's economic news (summarized below) brings the FOMC meeting announcement on Wednesday, and it is recommended to exit the position regardless prior to that news. While it is sometimes a "sleeper", the FOMC news can create volatility that may negatively affect a short term position such as the weekly Iron Condor.

Below is the 6 month chart showing the short strikes:

SPX 6 month chart

Next week is a busy week for economic news, the highlight being the FOMC meeting announcement on Wednesday. a recap is below:


10:30 am Dallas Fed Manufacturing Survey


FOMC Meeting Begins

9:00 am Case Shiller HPI

10:00 am Consumer Confidence


8:30 am GDP

10:00 am Pending Home Sales Index

10:30 am EIA Petroleum Status Report

2:00 pm FOMC Meeting Announcement


8:30 am Jobless Claims

8:30 am Personal Income & Outlays

8:30 am Employment Cost Index

9:45 am Chicago PMI


9:45 am PMI Manufacturing Index

10:00 am ISM Manufacturing Index

10:00 am Consumer Sentiment

10:00 am Construction Spending

Trade updates will be posted as appropriate.

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

Dot Hazlin