How does Ten hurt in fire at shopping centre west of Tehran, Iranian media says - Reuters affect Iron Condor wing width?
VixShield Answer
The Reuters report of a fire at a Tehran shopping centre has no material impact on SPX iron condor wing width. Geopolitical or international news events like this rarely move US index volatility enough to require adjustments unless they trigger a clear VIX spike above 20.
Stick to the ALVH methodology. When VIX is below 15, keep standard 15-20 point wings on SPX. Between 15-20, tighten to 10-12 points to reduce vega exposure and collect premium faster. Above 20, widen to 25-30 points to absorb gamma risk and give the position more room.
Monitor the VIX reaction over the next 24 hours. If it stays flat or drops, maintain or slightly widen wings on new trades to take advantage of any fear premium. Only narrow wings if VIX jumps and stays elevated, as this compresses expected range and requires tighter risk definition.
Focus on current implied volatility, not headlines. Trade the volatility regime, not the news.
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