It is recommended to adjust RUT Iron Butterfly.

As of this writing, RUT is down over 12 points for the day. As outlined in the weekend update, the October open position will be adjusted before the end of the day. A recap of the adjustment is below:

Original Position:

SOLD RUT October 1160 Call.

BOUGHT RUT October 1210 Call.

SOLD RUT October 1160 Put.

BOUGHT October 1110 Put.

Net Credit (all four legs): $29.70

The guidelines call for the threatened side to be rolled 20 points. However, with the move this morning I am going a bit outside the guidelines and recommending to roll the put side down 30 points rather than 20. This can be accomplished with one order: "BUY Condor"; in this case all Puts. The adjustment will be:

BUY RUT October 1160 Put.

SELL RUT October 1110 Put.

SELL RUT October 1130 Put.

BUY RUT October 1080 Put.

The adjusted position will now put the short put strike at 1130, and the short call at the original strike of 1160.

The current debit to adjust the position is $9.40. It is recommended to adjust before the end of the day today. Actual fill price for the adjustment will be posted when the order fills.

As always, stay keen on your risk management and trade carefully,

Dot Hazlin