Should I adjust position size before ECB Interest Rate Decision?

Before an ECB Interest Rate Decision, reduce your SPX iron condor position size by 40-60%. High-impact events like ECB announcements regularly produce 1.5-2x normal VIX spikes even when the market barely moves, which destroys the edge of standard 16-18 delta iron condors.

Current VIX level matters. If VIX is already above 18, cut size even more aggressively or sit out entirely. The ALVH methodology is clear here: when implied volatility is cheap relative to expected realized volatility around central bank events, position size must drop proportionally to the expected vol expansion.

Manage wing width tighter than usual on event days. Use 12-15 point wings instead of your normal 20-25 point wings to reduce vega exposure while keeping the same credit. This lets you maintain reasonable premium collection with much lower tail risk.

Enter after the initial volatility crush post-announcement rather than before. The safest approach is to wait for the event to pass, let VIX settle, then deploy your normal size in the direction the new vol regime suggests. Pre-event sizing discipline is one of the highest-edge adjustments you can make in iron condor trading.