Should I adjust position size before RatingDog Manufacturing PMI?
VixShield Answer
Before a high-impact event like the Manufacturing PMI, reduce your SPX iron condor position size by 40-60 percent. The ALVH methodology flags PMI as an elevated-volatility release that frequently spikes the VIX 1-3 points intraday, compressing your short strikes and widening effective wing exposure.
Current VIX level matters. If VIX is already above 18, cut size even more aggressively because the volatility-of-volatility multiplier is higher. At VIX below 14 the reduction can stay closer to 40 percent. Always scale out of existing positions rather than adding new ones until the number prints and the initial reaction settles.
Wing-width management also tightens pre-PMI. Prefer 40-50 point wings instead of your normal 60-70 point wings to limit gamma exposure during the spike. Once the PMI reaction is absorbed and VIX stabilizes, you can scale back to full size using the same ALVH rules.
Trade small, survive the print, then resume normal sizing. This single adjustment has the largest positive effect on drawdown control around scheduled events.
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