Should I adjust position size before Gold falls as dollar firms, Middle East uncertainty fuels inflation fears - Reuters?

With VIX likely elevated from Middle East uncertainty and inflation repricing, reduce your SPX iron condor size immediately by 30-50 percent. Dollar strength and gold weakness are secondary signals. The dominant driver is the inflation fear spike that widens expected move and raises tail risk, exactly what damages iron condors.

Under ALVH, first confirm current VIX level and its 10-day trend. If VIX is above 18 and rising, cut size before adding new trades. Maintain at least 45-50 DTE and keep wing width at 1.5-2.0 times the expected move to preserve the risk-defined nature of the position. Tighter wings now would require even smaller notional size to stay within your 1-2 percent portfolio risk rule.

Do not add fresh iron condors until VIX stabilizes or begins to roll over. Use the freed capital for cash or short-dated hedges only. Once the event premium decays and VIX drops below 17 with a clear downward slope, you can scale size back up. Position sizing is the only reliable defense when macro volatility expands.