Should I adjust position size before Westpac Consumer Confidence Change?
VixShield Answer
Before the Westpac Consumer Confidence Change release, reduce your iron condor position size by 40-60 percent. This event often triggers short-term AUD volatility spikes that can expand SPX implied volatility even when the direct correlation is modest.
Current VIX levels above 18 already price in elevated risk. Adding an economic data release on top increases the probability of a 1-2 percent SPX move that can breach your short strikes. The ALVH methodology flags this period as elevated regime risk because both absolute VIX and the change in VIX tend to rise around scheduled sentiment numbers.
Tight wing-width condors are especially vulnerable here. If you are running 10-15 point wings, the risk-reward skews sharply negative ahead of the print. Scale back now, keep the same strikes on the reduced size, and reload to full size only after the number is absorbed and VIX settles. This preserves capital and prevents one release from forcing an early adjustment or full stop on the entire book.
Put This Knowledge to Work
VixShield delivers professional iron condor signals every trading day, built on the methodology behind these answers.
Start Free Trial →