Should I adjust position size before Industrial Production YoY?
VixShield Answer
Yes, reduce position size by 30-50% heading into the Industrial Production YoY release. This report frequently moves SPX 0.6-1.2% in the first 15 minutes and widens the VIX 2-4 points, directly threatening your iron condor wings.
Under the ALVH methodology, stay in full size only when VIX is below 15 and expected event impact is low. Industrial Production qualifies as a medium-impact release that spikes implied volatility, compressing your profit zone and increasing the probability of a wing breach.
If your current condor has 45+ DTE and you are already 8-12 points from each short strike, you can keep 70% of normal size. Otherwise cut to half or flatten entirely 30 minutes before the 8:30 ET print. Re-enter at normal size 15-30 minutes after the number once VIX settles and the initial SPX thrust is absorbed.
Tight wing management becomes critical around this release. Never widen wings to compensate for the event. Smaller size plus standard 1:3 wing width keeps your risk defined and prevents one print from damaging weekly P&L.
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