The broad market closed on a high note Friday; recovering from Thursday's beating.
SPX rose to close yesterday at 2108, up .1.09% for the day. Friday's gain limited the losses for the week to only -.4%
Below is the current open position status:
SPX Weekly Iron Condor
This May 2 weekly position was opened Friday; trade details are:
- SOLD SPX May 2 2135 Call, $1.20.
- BOUGHT SPX May 2 2145 Call, $.55.
- SOLD SPX May 2 2040 Put, $2.95.
- BOUGHT SPX May 2 2030 Put, $2.05.
Order was filled as an "Iron Condor" for $1.55 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: $845.
Target Gain: 7% of margin/risk or $59.
Max loss: 10% of margin/risk or $85.
The risk graph showing the position as of the close is below:
SPX May 2 Weekly Iron Condor
As of the close, the position is currently +$35. The position is negative delta, so should benefit from a slight pullback Monday. Our exit order remains in place to close the position if the debit reaches $.95, which would be target gain. The position will be closed if the debit reaches $2.40, which would be the pre-set max loss for the trade.
Below is the 6 month chart showing the short strikes:
SPX 6 month chart
Next week is a busy week for economic news, along with a flurry of Fed speakers. A recap is below:
10:00 am Factory Orders
3:10 pm Fed John Williams
8:30 am International Trade
10:00 am ISM Non Manufacturing Index
12:25 pm Fed Charles Evans
8:15 am ADP Employment Report
8:30 am Productivity & Costs
9:15 am Fed Chairman Janet Yellen speaking with IMF Managing Director Christine Lagarde
10:30 am EIA Petroleum Status Report
1:15 pm Fed Esther George
1:30 pm Fed Dennis Lockhart
8:30 am Jobless Claims
8:30 am Monthly Employment Situation Report
Trade updates will be posted as appropriate.
As always, stay keen on your risk management and trade carefully,