Investors put the Greek fear behind them; indices across the board posted solid gains for the week.
Greece is fading into the background as a distant memory, for now at least. Now it's onto earnings season and economic news to drive the market, but it appears like the path of resistance may be up, even with last week's gains.
Below is the current open position status:
SPX Weekly Iron Condor
This July 4 weekly position was opened Friday; trade details are:
- SOLD SPX July 4 2145 Call, $1.15.
- BOUGHT SPX July 4 2155 Call $.40.
- SOLD SPX July 4 2090 Put, $2.70.
- BOUGHT SPX July 4 2080 Puts, $2.00.
Order was filled as an "Iron Condor" for $1.45 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: $855.
Target Gain: 7% of margin/risk or $60.
Max loss: 10% of margin/risk or $85.
The risk graph showing the position as of the close is below:
SPX July 4 Weekly Iron Condor
SPX closed Friday at 2126, up 2.35 points. The index posted its first weekly gain in a month, climbing 2.4% for the week.
As of the close, the position is currently -($10), the current debit to exit is $1.55. Our exit order remains in place to close the position if the debit reaches $.85, which would be target gain. As outlined in the guidelines, the position will also be exited at the pre-set max loss of 10%. The position is negative delta, and should benefit from any slight pullback next week.
Below is the 6 month chart showing the short strikes:
SPX 6 month chart
SPY Monthly Iron Condor
This August position was entered Monday, July 13. Position details are:
- SOLD SPY August 216 Call, $.62 Credit.
- BOUGHT SPY August 221 Call, .09 Debit.
- SOLD SPY August 198 Put, 1.06 Credit.
- BOUGHT SPY August 193 Put, $.63 Debit
Order was filled as an "Iron Condor" for $.96 net credit (all four legs) .
Margin/Risk is calculated by the width of the wings ($500), less credit received.
Margin/Risk for this trade: $404.
Target Gain: 10% of margin/risk.
Max loss: 15% of margin/risk.
Below is the risk graph of the position as shown on my broker's platform:
SPY August Iron Condor:
SPY closed Friday at 212.48, up just slightly (.18) from the previous day. The position is currently -($10), also negative delta so should benefit from a slight pullback.
Below is the SPY chart showing the short strikes:
SPX 6 month chart
The guidelines call for the position to remain open until target gain is reached, as long as SPY stays between the short strikes. They also call for exiting at the pre-set max loss, or if SPY reaches either short strike.
Next week is fairly light for economic news; a recap is below:
10:00 am Existing Home Sales
10:30 am EIA Petroleum Status Report
8:30 am Jobless Claims
9:45 am PMI Manufacturing Index Flash
10:00 am New Home Sales
Next week is the planned entry for the RUT Iron Condor for the August monthly cycle. Monday will be 31 days prior to expiration, so we will 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
Trade updates will be posted as appropriate.
As always, stay keen on your risk management and trade carefully,