Should I adjust position size before Fed leaves rates unchanged at Jerome Powell's final meeting as chairman?

Before Jerome Powell's final FOMC meeting, reduce your iron condor position size by 40-60 percent. Powell's last meeting carries elevated event risk regardless of an expected rate hold, as markets will parse every word for forward guidance and legacy implications. VIX is likely to grind higher into the event, compressing your expected edge.

Apply the ALVH methodology strictly here. At current VIX levels around 15-18, your acceptable loss per condor should stay under 1.2 percent of total portfolio. If your normal size is 5 percent of capital, cut it to 2-2.5 percent maximum. This preserves dry powder for post-meeting vol expansion opportunities.

Keep wing width at 40-50 points on SPX for the shortened holding period. Narrower wings reduce gamma exposure near the event. Enter no earlier than 35-40 DTE and target an exit 3-5 days before the announcement if you must carry any position.

Position sizing is your primary defense, not adjustments after the fact. Smaller size, wider wings relative to normal, and strict ALVH adherence protect capital through the headline risk. Scale back in aggressively once the event clears and VIX mean-reverts.