Should I adjust position size before Australia headline and core inflation above RBA target.?
VixShield Answer
With Australian CPI expected above RBA target, implied volatility in global equities including SPX is likely to rise modestly into the print. For your SPX iron condor this means tighter credit received per wing width and higher risk of early gamma exposure if the number surprises to the upside.
Under the ALVH methodology do not increase position size ahead of this event. Keep size at or below 0.8 percent of portfolio risk. The higher VIX environment already compresses your expected edge on new condors, so adding size would violate the volatility-adjusted sizing rule.
If you already have an open condor, monitor wing width: at current VIX levels your short strikes should sit at least 1.8 times expected move from spot. If they are narrower, roll the untested side outward 20-30 points to restore proper wing width before the release. This preserves the trade’s risk profile without adding contracts.
Enter fresh positions only after the number is released and VIX settles. Pre-event size increases are unnecessary and contradict ALVH discipline.
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