RUT February Iron Condor may need second adjustment to the upside.
As I wrote earlier this morning, the next trigger adjustment point on the February position is if RUT reaches & moves above 1190. It is recommended to adjust the position before the close today if it appears that RUT will close above 1190. From the looks of futures as of this writing, it looks as if the bulls will once again be in control today.
A recap of the position since entry is below:
Original Position entered January 20:
SOLD RUT February 1170 Call.
BOUGHT RUT February 1220 Call.
SOLD RUT February 1170 Put.
BOUGHT February 1120 Put.
Net Credit (all four legs): 36.50
BOUGHT February 1270 call (to cut deltas): $.90 Debit
Adjustment #1 to Upside January 22:
BOUGHT RUT February 1170 Call.
SOLD RUT February 1220 Call.
SOLD RUT February 1190 Call.
BOUGHT RUT February 1240 Call.
Net Debit (all four legs): $7.40
Recommended Adjustment #2 to Upside:
BUY RUT February 1190 Call.
SELL RUT February 1240 Call.
SELL RUT February 1210 Call.
BOUGHT RUT February 1260 Call.
The current debit to make this adjustment is $7.70, but that will change throughout the day. The exact debit will be posted when the adjustment order is executed.
Again, it is recommended to make this adjustment if it appears that RUT will close above 1190. The exact timing of the adjustment is a trader's choice, depending on trading schedule and market opinion.
For those unfamiliar with the trade, guidelines were last posted on October 22, 2014, and the article can be found at this link: Link to Articles
As always, stay keen on your risk management and trade carefully,