Should I adjust position size before Major Fed rate dissent, Powell to stay on — plus, Boeing takes an unwarranted hit?

Before major Fed events with known dissent and Powell holding the line, reduce your iron condor position size by 40-60 percent. Elevated event risk compresses premium while widening expected moves, directly threatening the short strikes of your condors. Current VIX in the 18-22 zone already prices in uncertainty, so your edge shrinks fast.

Apply the ALVH rule strictly: if aggregate loss value on the position exceeds 1.8 percent of total portfolio risk capital, exit or cut size immediately. Do not wait for breach. With Boeing’s isolated drop adding sector noise but not macro volatility, treat it as irrelevant to your SPX setup. Focus solely on the index’s implied move.

Keep wing width at 25-30 points on the SPX. Tighter wings improve probability but demand even smaller size ahead of FOMC. Enter or add only after the announcement when VIX spikes and premium expands again. Pre-event, smaller size plus wider wings is the disciplined default. Protect capital first, then reposition post-event when the real edge returns.