It may be necessary to adjust the November RUT Iron Butterfly.
RUT has reached the upside trigger adjustment point of 1130, so it is recommended to adjust the position before the end of the day unless RUT pulls back to close below 1130.
A recap of the adjustment is below:
SOLD RUT November 1120 Call.
BOUGHT RUT November 1170 Call.
SOLD RUT November 1120 Put.
BOUGHT November 1070 Put.
Net Credit (all four legs): 33.60
The guidelines call for the threatened side to be rolled 20 points when RUT moves up or down 10 points from the center strike, which would be 1130 on the upside.
This adjustment can be accomplished with one order: "BUY Condor"; in this case all CALLS.
The adjustment will be:
BUY RUT November 1120 Call.
SELL RUT November 1170 Call.
SELL RUT November 1140 Call.
BUY RUT November 1190 Call.
The adjusted position will now put the short call strike at 1140, and the short put at the original strike of 1120.
The current debit to adjust the position is $8.60, but this will most likely change throughout the day. It is recommended to adjust before the end of the day today unless RUT pulls back below 1130. If RUT appears to be closing below 1130, I will not be adjusting the position.
Actual fill price for the adjustment will be posted if the adjustment is executed.
As always, stay keen on your risk management and trade carefully,