Geopolitical and hurricane fears subdued the market as the week closed.
The broad market closed mostly lower Friday, finishing a holiday-shortened week with modest losses. Investors traded cautiously ahead of a potential missile test by North Korea and the arrival of Hurricane Irma on the Florida coast over the weekend.
The benchmark index closed down -3.67 points at 2461.43, after a see-saw day of gains and losses. The modest decline represented a .6% loss.
Below is the open position status:
SPX Weekly Iron Condor for September 15 Cycle
This position was opened on Thursday, September 7; details below:
SOLD SPX September 15 2495 Call, 1.29 credit.
BOUGHT SPX September 15 2505 Call, .64 debit.
SOLD SPX September 15 2420 Put, 3.24 credit.
BOUGHT SPX September 15 2410 Put, 2.64 debit.
Order was filled as an "Iron Condor" for $1.25 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: $875.
Target Gain: 7% of margin/risk or $60.
Max loss: 10% of margin/risk or $85.
Below is the risk graph of this week's position as of the close Friday:
SPX September 15 Weekly Iron Condor:
Think or Swim is currently showing the position down -$5, the current debit to exit is $1.30. Our order remains in place to exit for a debit of $.65 which would be target gain, or if the max loss of 10% is reached. The position is flat delta so nicely centered going into next week.
Below is the SPX chart showing the short strikes:
SPX 6 month chart
The volatility index VIX ticked up a bit yesterday; it closed at 12.12, +4.94% or .57 points.
VIX 6 month chart
Next week's economic news, is summarized below:
Monday, September 11 and Tuesday, September 12
No significant reports
8:30 am Producer Price Index
10:30 am EIA Petroleum Status Report
8:30 am Consumer Price Index
8:30 am Jobless Claims
8:30 am Retail Sales
8:30 am Empire State Manufacturing Index
9:15 am industrial Production
10:00 am Consumer Sentiment
Next week is the planned entry window for the SPY October Iron Condor. Monday will be 39 days to expiration, so we will look to enter the position then depending on overall market conditions and available credit.
For those unfamiliar with the strategies we trade, the trade management guidelines for all the Couch Potato Trader plays 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,