Should I adjust position size before BoE Interest Rate Decision?

Before the BoE rate decision, reduce your SPX iron condor position size by 40-60%. Heightened volatility around central bank events frequently pushes VIX above 18-20, which expands the expected move and threatens the short strikes of standard iron condors.

Under the ALVH methodology, when implied volatility is rising into a known catalyst, you must lower notional exposure to keep tail risk within acceptable limits. A full-size condor opened now will have wings that are effectively too narrow relative to the anticipated post-announcement expansion in realized volatility.

Optimal approach: cut size today, wait for the decision to pass, then reassess VIX and the shape of the volatility skew. If VIX settles below 17 and the curve flattens, you can scale back in with wider wings (minimum 60-80 points on SPX) to restore the risk-adjusted edge. Smaller size now protects your account from gap risk while preserving dry powder for higher-probability setups after the event.