Should I adjust position size before NAB Business Confidence?

Before NAB Business Confidence, reduce your iron condor position size by 30-50 percent. This event often triggers short-term AUD volatility spikes that bleed into global risk sentiment and can widen SPX implied volatility unexpectedly.

At current VIX levels around 15-17, standard full-size condors already carry elevated tail risk. Shrinking size protects your portfolio from gap moves or rapid VIX expansion while still allowing the ALVH methodology to function. Keep your wing width at 30-40 points on the SPX; narrower wings become too sensitive to the event-driven volatility crush or expansion.

Enter the reduced-size condors 1-2 days after the NAB release once the initial reaction has settled and VIX term structure normalizes. This timing lets you re-enter with clearer delta-neutral strikes and better risk-defined parameters. Position sizing is the easiest and most effective risk control before scheduled macro releases.