Santa Claus was late for his rally this year, but showed up after all.
Trading was light Thursday and the markets closed early for the Holiday weekend. SPX closed down 3.3 points at 2060.99, -.2% but posted a solid gain for the week at +2.8%. Below is the open position status:
SPX Weekly Iron Condor
This December 5 weekly position was opened Friday; trade details are:
- SOLD SPX December 5 2100 Call, currently $1.80.
- BOUGHT SPX December 5 2110 Call, currently $.85.
- SOLD SPX December 5 2010 Put, currently $ 2.15.
- BOUGHT SPX December 5 2000 Put, currently $1.55.
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 December 5 Weekly Iron Condor
As of the close, the position is currently+$15, the current debit to exit is $1.40. Our exit order remains in place to close the position if the debit reaches $.95, which would be target gain. A outlined in the guidelines, the position will also be exited at the pre-set max loss of 10%. The position is fairly well centered going into next week.
Below is the 6 month chart showing the short strikes:
SPX 6 month chart
Next week's economic news is summarized below:
10:30 am Dallas Fed Manufacturing Survey
9:00 am S & P Case Shiller HPI
10:00 am Consumer Confidence
10:00 am Pending Home Sales
10:30 am EIA Petroleum Status Report
8:30 am Jobless Claims
9:45 am Chicago PMI
For those unfamiliar with the strategies we trade, the trade management guidelines for all the Couch Potato Trader plays were most recently published on August 20, 2015, 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,