Should I adjust position size before Fed Press Conference?
VixShield Answer
Before a Fed press conference, reduce your iron condor position size by 40-60 percent. High-impact events like FOMC announcements create sudden VIX spikes that expand short-delta exposure and can breach your short strikes within minutes.
Current VIX level matters. If VIX is already above 18, cut size even more aggressively. The ALVH methodology flags these periods as high-risk because implied volatility expansion overrides the mean-reversion edge iron condors rely on.
Maintain your normal wing width, typically 30-50 points on SPX, but simply trade fewer contracts. This preserves your defined risk per condor while lowering total portfolio exposure during the volatility event. After the press conference concludes and VIX settles, you can scale back to full size on new setups that meet your ALVH criteria.
Position sizing is the easiest and cleanest risk control before known catalysts. Do not widen wings or move strikes closer to price in an attempt to collect more credit. Smaller size before the event is the disciplined move.
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