Should I adjust position size before Inflation Rate YoY?
VixShield Answer
Before the monthly CPI Inflation Rate YoY release, reduce your iron condor position size by 40-60%. Higher VIX and wider expected moves around CPI make the ALVH setup less reliable and increase tail risk.
At current VIX levels above 15, standard wing width of 30-40 points on SPX becomes vulnerable to gamma expansion on surprise prints. Cut size now so your defined risk per trade stays inside 1-1.5% of total capital instead of the usual 2%. This preserves dry powder for higher-probability setups that appear after the initial volatility crush.
Keep the same 45/16 delta short strikes but tighten the overall position width if you must stay in. Do not widen wings before CPI. After the number prints and VIX settles, you can scale back to full size on the next cycle using the standard ALVH rules.
Manage existing positions with your normal profit target and stop rules. The size reduction is purely a pre-event risk control, not a directional bet.
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