S&P500 looks rangebound as US presidential election approaches
We are selling a $5-wide iron condor using the cash index SPX (S&P 500). The market is likely to continue to grind along in a range in the lead-up to the presidential elections in the US on November 8, and possibly beyond.
Management and risk description
The iron condor consists of two vertical spreads (a short vertical call spread and short vertical put spread) and gains from the underlying price remaining in between. Hence, a neutral market strategy is appropriate.
Underlying price: S&P 500 @ 2164
Maximum gain: $2.35, at expiration
Time horizon: 40 days.
— Edited by Robert Ryan
Non-independent investment research disclaimer applies. Read more