RUT May Iron Butterfly Adjusted
The upside adjustment for the May position filled for $9.25 debit. Adjustment details are:
BOUGHT RUT May 1260 Call, 28.90 debit.
SOLD RUT May 1310 Call, 4.50 credit.
SOLD RUT May 1280 Call, 16.40 credit.
BOUGHT May 1330 Call, 1.25 debit.
Net debit (all four legs): $9.25
The graph of the adjusted position is below:
RUT May Iron Butterfly after adjustment:
The position summary after the adjustment is as follows:
SHORT May 1280 Call
LONG May 1330 Call
SHORT May 1260 Put
LONG May 1210 Put
Plus: LONG May 1320 Call to cut deltas.
The position is now a 20 point wide Iron Condor.
The next adjustment trigger point on the upside will be 1280, and remain at 1250 on the downside.
The trade guidelines were most recently published on October 22, 2014, and can be found here: Link to Articles
Trade updates will be posted as appropriate.
As always, stay keen on your risk management and trade carefully,