RUT October position is nearing Adjustment #3.
RUT is drawing close to the next adjustment trigger point of 1110. It is recommended to make the adjustment when it reaches that level, unless it bounces and closes above 1110. A recap of the adjustment is below:
Short RUT October 1160 Call.
Long RUT October 1210 Call.
Short RUT October 1110 Put.
Long RUT October 1060 Put.
The guidelines call for the threatened side to be rolled 20 points. This can be accomplished with one order: "BUY Condor"; in this case all Puts. The adjustment would be:
BUY RUT October 1110 Put.
SELL RUT October 1060 Put.
SELL RUT October 1090 Put.
BUY RUT October 1040 Put.
The adjusted position will now put the short put strike at 1090, and the short call at the original strike of 1160. In my article this morning when I re-posted the guidelines, I mentioned at times it may be necessary to roll the unthreatened side closer to the fire to get more credit in the trade. However, I hesitate to recommend this today; I would rather wait and see what the market brings tomorrow. Today's drop of over 17 points is a big move, so there "could be" a relief rally tomorrow.
The current debit to adjust the position is $4.40, although this will likely change depending on the time it is adjusted. It is recommended to adjust before the end of the day today unless it appears that RUT will close above 1110. Actual fill price for the adjustment will be posted if the position is adjusted.
As always, stay keen on your risk management and trade carefully,