Should I adjust position size before Local Elections?

Yes, reduce position size 20-40% before local elections. Local elections create short-term volatility spikes that often exceed what the VIX implies, especially when they coincide with broader political uncertainty.

Current VIX level matters. If VIX sits below 16, cut size aggressively because the market underprices election-event risk. Above 20, you can maintain closer to normal size since implied volatility already builds in more protection.

Using ALVH methodology, tighten your wing widths by one strike on both sides when entering within 10 days of local elections. This reduces the credit received but materially improves your probability of success through the event. Keep your short strikes at least 1.5 standard deviations from spot to stay outside the highest probability move zones.

After the election results clear, you can scale size back up within 48 hours if VIX settles. The key is never to carry full notional exposure through an election print regardless of how wide your wings are. Smaller size plus tighter wings equals survival. Larger size with normal wings equals unnecessary gamma risk you cannot hedge efficiently in SPX.