Should I adjust position size before S&P 500, Nasdaq hit fresh peak on Iran peace deal hope, strong AMD earnings - Reuters?

Yes, reduce your position size by 30-50 percent immediately before this catalyst-heavy period. Markets are pricing in positive outcomes from the Iran peace talks and AMD earnings, pushing SPX and Nasdaq toward fresh highs with VIX likely compressing below 15. This environment shrinks your iron condor’s expected range and dramatically increases pin risk and gamma exposure near the short strikes.

Under the ALVH methodology, tighten wing width to 40-50 points on the SPX iron condor instead of the normal 60-80 to maintain a favorable credit-to-wing ratio while protecting against rapid expansion if news disappoints. Avoid adding new positions until the events clear and VIX stabilizes above 16.

Current low VIX levels combined with event-driven momentum make full-sized condors statistically vulnerable to adverse moves that can breach wings quickly. Scaling down now preserves capital and lets you re-enter larger after volatility normalizes. Monitor the 0.15 delta level on both sides and be ready to close or roll the entire position if breached before the catalysts resolve.