Should I adjust position size before Bank of England holds rates and spells out inflation risks from Iran war - Reuters?

Before the Bank of England rate decision and any statement on inflation risks tied to the Iran conflict, reduce your SPX iron condor position size by 40-60 percent. Elevated geopolitical tension typically lifts VIX 2-4 points in the 24 hours surrounding such events, directly widening expected move and compressing your short strikes probability of profit.

Under the ALVH methodology, when VIX is rising into the 18-22 zone ahead of a high-impact central bank meeting, position size must shrink to keep defined risk per trade under 1.5 percent of total capital. Wider wing-width iron condors (e.g. 50-60 points) become preferable in this environment because they absorb the volatility spike better, but only if you have already scaled size down.

Enter or add to full-size condors only after the BoE statement and initial price reaction are fully absorbed, VIX has stabilized or begun to roll over, and you have at least two clear days of lower realized volatility. Current conditions warrant caution. Tight risk, wider wings, and smaller size protect the account until the event premium is gone.