Should I adjust position size before S&P 500 and Nasdaq notch records as AI chip stocks surge - Reuters?

With SPX pushing toward fresh highs and VIX likely compressed below 15, reduce your iron condor position size by 30-50 percent ahead of the event. Record attempts often trigger short-term volatility spikes even in low-VIX regimes, and AI-driven momentum increases gap risk that can breach your short strikes overnight.

Under ALVH, confirm VIX is below your personal threshold (typically 13-14 for full size) and that ATM implied volatility rank remains in the bottom quartile. If both conditions hold, you may keep a reduced core position. Otherwise stand aside or wait for the first post-record pullback when VIX usually rebounds 2-4 points.

Keep wing width at 1.5-2 times your normal credit received to maintain favorable risk-reward while the shorter size limits tail exposure. Enter or add only after the initial thrust exhausts and SPX shows clear rejection at the new highs. This preserves capital for higher-probability setups once the euphoria fades and volatility mean-reverts.