Should I adjust position size before Iran executes two for spying for Israel - Reuters?
VixShield Answer
No, do not adjust position size based on this headline. Geopolitical headlines like the Reuters report on Iran create short-term VIX spikes that are usually noise for SPX iron condors.
Current VIX levels remain the primary filter under the ALVH methodology. If VIX is below 20-22 and your condor is inside the expected move with proper wing width, stay with the position you sized at entry. Typical 45-55 DTE iron condors on SPX use 0.5-1% of portfolio risk per trade regardless of headline flow.
Wing-width management stays mechanical: keep shorts 15-20 points from ATM when VIX is under 18, widen to 25-30 points above 20. Size is set once at trade entry using your defined risk amount divided by the credit received times wing distance. Adjusting size mid-trade on news usually leads to over-trading and curve-fitting to headlines.
If the event actually moves realized volatility and breaches your short strikes, then manage the losing side per your exit rules. Until then, headline-driven sizing changes violate the ALVH discipline of letting VIX and technical levels drive decisions, not news flow.
Put This Knowledge to Work
VixShield delivers professional iron condor signals every trading day, built on the methodology behind these answers.
Start Free Trial →