RUT January Iron Condor Closed for Target.
The closing order for the January Iron Condor filled shortly after the opening bell, the gain on this position was $253 or 5% of the gross margin, and target for the trade.
A summary of the position is below:
Original Order December 18:
SOLD RUT January 1180 Call.
BOUGHT RUT January 1230 Call.
SOLD RUT January 1180 Put.
BOUGHT January 1130 Put.
Net Credit (all four legs): $35.15.
BOUGHT RUT January 1260 Call. Debit: $1.70
The trade guidelines call for the position to be adjusted with a 10 point move from the center strike in either direction. With RUT at approximately 1193, the position was adjusted on December 19 as follows:
BUY RUT January 1180 Call.
SELL RUT January 1230 Call.
SELL RUT January 1200 Call.
BUY RUT January 1250 Call.
Net Debit (all four legs): $7.95.
After this initial adjustment, the position had short strikes at 1200 and 1180, converting it from an ATM Iron Butterfly to a 20-point wide Iron Condor.
On December 26, the call spreads were rolled another 20 points towards the close of the day. Adjustment order summary is below:
BUY RUT January 1200 Call.
SELL RUT January 1250 Call.
SELL RUT January 1220 Call.
BUY RUT January 1270 Call.
Net Debit (all four legs): $9.75
Closing Order Filled January 5:
BOUGHT RUT January 1220 Call.
SOLD RUT January 1270 Call.
BOUGHT RUT January 1180 Put.
SOLD RUT January 1130 Put.
Net Debit (all four legs:): $13.52
SOLD RUT January 1260 Call.
Net Credit: $.30.
Net Gain after adjustments: $253.
The next entry for the February Iron Butterfly will be sometime the week of January 19.
Position updates will be posted as appropriate.
As always, stay keen on your risk management and trade carefully,