Should I adjust position size before Gold rebounds from five-week low but inflation fears cap gains - Reuters?

Yes adjust your position size now before any Gold rebound materializes. Current VIX near 18-20 signals elevated uncertainty that favors smaller SPX iron condor wings and reduced notional exposure. With inflation fears capping upside in Gold and equities, implied volatility skew remains elevated, increasing the probability of sharp downside moves that could breach your short put wing.

Follow ALVH methodology: reduce size to 50-60% of normal until VIX drops below 16 or the front-month SPX setup shows clear 1.5-2.0 standard deviation range stability. Tighten wing width to 25-30 points on both sides instead of the usual 40-50 to limit capital at risk while inflation data and Fed rhetoric remain in focus. This preserves dry powder for higher-probability setups once the Gold rebound either confirms or fails.

Monitor the 0.15 delta on short strikes daily. If VIX spikes above 22, exit or roll the entire position rather than add size. Smaller size now protects account equity and keeps you in the game when the post-inflation clarity trade arrives.