Should I adjust position size before Unemployment Rate?
VixShield Answer
Yes adjust your position size before the Unemployment Rate release. With VIX typically 16-20 ahead of this report the expected SPX move is large enough to threaten standard iron condor wings.
Under ALVH methodology reduce size to 60-70% of normal when VIX sits between 15-19 and an economic catalyst is scheduled within 48 hours. This preserves buying power while still allowing the condor to collect 0.20-0.25 credit on 15-20 point wings.
If VIX is above 19 cut size further to 40-50% and tighten wings to 10-12 points. The tighter wings reduce vega exposure and keep the position inside the higher implied move. After the number prints and VIX drops below 17 you can scale back to full size on the next setup.
Never add to existing positions the day before Unemployment. Focus on position-size discipline first, then wing-width second. This single rule has the largest impact on drawdown control during high-impact macro weeks.
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