Diminishing worries over the Deutsche Bank problems brought the bulls out of hiding after their retreat Thursday.
The broad market closed higher Friday after Thursday afternoon's selloff. The close of the third quarter saw the benchmark index SPX close up 17.14 points at 2168.27, or +.80%. The gain represented a 3.3% gain for the quarter.
Below is the open position status:
SPX Weekly Iron Condor
This position was opened on Friday, September 30. Position details below:
SOLD SPX October 7 2200 Call, 1.05 credit.
BOUGHT SPX October 7 2210 Call, .35 debit.
SOLD SPX October 7 2095 Put, 2.90 credit.
BOUGHT SPX October 7 2085 Put, 2.25 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 $85.
Below is the risk graph as of the close Friday:
SPX October 7 Iron Condor:
The position is showing a gain of $30 as of the close; the debit to exit is $1.05 according to Think or Swim. The position is slightly negative delta going into next week. Our order remains in place to exit for target gain when the debit reaches $.75, or if the max loss reaches 10%.
Below is the SPX chart indicating the short strikes:
SPX 6 month chart
Next week's economic news, highlighted by Friday's monthly Employment Situation Report as well as a flurry of Fed speakers, is summarized below:
9:45 am PMI Manufacturing Index
10:00 am Construction Spending
8:05 am Fed's Jeffrey Lacker speaks
8:00 pm Fed's Charles Evans speaks
8:15 am ADP Employment Report
8:30 am International Trade
9:30 am Neel Kashkara speaks
10:00 am Factory Orders
10:00 am ISM Non-Manufacturing Index
10:30 am EIA Petroleum Status Report
1:00 pm Fed's Jeffrey Lacker speaks
8:30 am Jobless Claims
8:30 am Employment Situation Report
10:30 am Stanley Fischer speaks
12:45 pm Loretta Mester speaks
3:00 pm Esther George speaks
4:00 pm Lael Brainard speaks
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,