Should I adjust position size before Heads up: Germany states' CPI readings due later today?

Before German CPI releases, reduce your SPX iron condor position size by 40-60 percent. These inflation prints frequently spark short-term EURUSD and equity volatility spikes that widen SPX ranges beyond normal expected move, especially when VIX sits above 16.

Under the ALVH methodology, you only carry full size when VIX is below 15 and no major macro events sit inside your 0-5 DTE window. German CPI qualifies as a scheduled event that breaks this rule. Smaller size protects your wing-width integrity and keeps margin usage in check if implied volatility expands 2-4 points intraday.

If you are already in a trade, tighten the short strikes or roll the untested side toward the new expected move rather than adding contracts. Post-release, once the initial volatility crush settles and VIX stabilizes, you can scale back to normal size on the next setup. Prioritizing risk control over edge on event days is the practical edge.