How does RBA Meeting Minutes affect Iron Condor wing width?
VixShield Answer
RBA Meeting Minutes typically inject volatility into AUD and global risk sentiment, which often lifts VIX by 1-2 points on release day. For SPX iron condors this means you must widen your wings by one full strike (usually 10-15 points extra on each side) compared to normal low-VIX setups.
Under the ALVH methodology, check VIX and VVIX 30 minutes before the minutes drop. If VIX is already above 16 or VVIX above 85, default to 25-30 point wings instead of the usual 15-20 point wings. This extra width protects against the initial spike and the subsequent chop that frequently follows central-bank commentary.
Manage wings dynamically: if VIX rises more than 1.5 points post-release, roll the untested side out 5-10 points wider immediately to restore 1:3 risk-reward. In low VIX environments (below 14) you can stay with standard 20-point wings but tighten your profit target to 40% of credit to exit before any delayed reaction.
Always reduce position size by 25% on RBA minutes days to account for the elevated tail risk even with wider wings.
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