Should I adjust position size before PPI MoM?
VixShield Answer
Before PPI MoM, reduce position size to 50-60% of your normal SPX iron condor allocation. PPI is a high-impact inflation print that frequently spikes VIX 2-4 points intraday and can trigger 1.5-2 standard deviation moves in SPX.
Under the ALVH methodology, you only run full size when VIX is between 12-17 and expected move is inside your short strikes with at least 1.8x wing-width buffer. PPI days rarely meet that standard. Smaller size protects your daily P&L volatility while still letting you collect theta if the print lands in line.
Keep your wing width at minimum 1.8x the expected move on both sides. If implied move is 0.65%, your wings should be at least 1.2% from short strikes. This extra buffer is critical before economic releases because liquidity dries up fast on surprises.
Trade the smaller size through the print, then scale back to full size after the initial volatility crush if VIX settles below 18 and your remaining deltas are under 15. This keeps risk under control without sitting out the entire event.
Put This Knowledge to Work
VixShield delivers professional iron condor signals every trading day, built on the methodology behind these answers.
Start Free Trial →