RUT April Iron Condor Closed.
For those of you trading or following the monthly RUT Iron Butterfly/Condor trade, you are well aware of how difficult this month has been. The position has been adjusted three times, once to the upside and twice to the downside. The position began to show some decent gains this morning, so I decided it was the better risk management decision to exit the position for less than target rather than risk losing all the gains once again.
The position was closed as follows:
- BOUGHT RUT April 1270 Call, 6.90 Debit.
- SOLD RUT April 1320 Call, .10 Credit.
- BOUGHT RUT April 1210 Put, 1.20 Debit.
- SOLD RUT April 1160 Put, .20 Credit.
Closing order executed as a single order: BUY " Iron Condor" .
Net Debit to Close Iron Condor: $7.80 (all four legs)
- SOLD RUT April 1310 Call.
Net Credit to close Call: $25.
Gain : Gain of $155.
This represented 3.1% of the gross margin/risk; not quite target for the trade but still a decent gain given the difficulty of the cycle for this position and the fact it was adjusted three times.
The next planned entry for the RUT Iron Butterfly will be sometime the week of April 13 for the May cycle.
As always, stay keen on your risk management and trade carefully,