Should I adjust position size before Inflation Rate YoY Flash?

Before the Inflation Rate YoY Flash release, reduce your position size by 40-60%. High-impact CPI prints regularly produce 1.5-2.0% SPX spikes that can breach even well-placed iron condor wings within minutes.

Current VIX levels above 18 already price in elevated event risk. The ALVH methodology signals caution here: when anticipated volatility (implied by the event) exceeds historical volatility of similar releases, smaller size preserves capital and keeps delta exposure manageable.

Cut size early, ideally 24-48 hours before the print. This prevents gamma scalping from becoming forced liquidation if the market gaps through your short strikes. Maintain the same wing width you normally use (typically 40-60 points on SPX) but simply trade fewer contracts. After the number is released and the initial volatility crush occurs, you can reload to normal size once VIX settles and the condor regains theta dominance.

Tight risk management on event days outweighs any edge from full-size positioning. Smaller size keeps you in the game for the higher-probability post-event decay.