Should I adjust position size before Five dead in fire at shopping centre west of Tehran, Iranian media say - Reuters?
VixShield Answer
No. The news event you referenced is unrelated to SPX index levels, VIX, or the mechanics of your iron condor. Do not adjust position size based on random geopolitical headlines.
Stick to the ALVH methodology. Size every trade according to your predefined account-risk rules (typically 1-2% of portfolio per condor) and current VIX regime. If VIX is below 15, maintain standard size with wider wings (e.g., 50-60 points). If VIX is 20+, reduce size 25-40% and tighten wings to 30-40 points to match elevated premium and gamma risk.
Only resize when the iron condor itself breaches your adjustment triggers: delta of short strikes approaching 0.20, or the position P&L hitting your preset stop (usually -2x credit received). Random external news does not qualify as a trigger. Keep position size consistent with your edge and risk parameters.
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