Okay, SPX closed at 2500, now what?
After a wobbly start, investors shrugged off the latest North Korean missile test to post sharp weekly gains, and a new record high closing. The benchmark index SPX closed at 2500.23, up +4.61 points or .18%. With SPX reaching this milestone close above 2500, there could be the opportunity for some profit taking next week, especially if things continue to heat up in the geopolitical arena.
SPX 6 month chart
The CBOE's volatility index, VIX, also dipped again yesterday. The index closed at 10.17, -.27 points or -2.59%.
VIX 6 month chart
Below is the open position status:
SPY Monthly Iron Condor for October
This position was opened on Monday, September 11; details below:
- SOLD SPY October 253 Call, .47 credit.
- BOUGHT SPY October 258 Call, .08 debit.
- SOLD SPY October 239 Put, 1.10 credit.
- BOUGHT SPY October 234 Put, .69 debit.
Order was filled as an "Iron Condor" for $.80 net credit (all four legs) .
Margin/Risk is calculated by the width of the wings ($500), less credit received.
Margin/Risk for this trade: $420.
Target Gain: 10% of margin/risk.
Max loss: 15% of margin/risk.
Below is the risk graph of the position as of the close Friday:
SPY October Iron Condor:
Think or Swim is showing the position is +$3.00, and it is quite short delta so would benefit from a pullback.
Below is the SPY chart showing the short strikes:
SPY 6 month chart
Next week's economic news, is summarized below:
10:00 am Housing Market Index
FOMC Meeting Begins
8:30 am Housing Starts
8:30 am Import/Export Prices
10:00 am Existing Home Sales
10:30 am EIA Petroleum Status Report
2:00 pm FOMC Meeting Announcement
2:30 pm Fed Chair Janet Yellen Press Conference
8:30 am Jobless Claims
8:30 am Philadelphia Fed Business Outlook Survey
9:45 am PMI Composite Flash
Next week is the planned entry window for the RUT October Iron Butterfly. Monday will be 32 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,