RUT May Iron Condor Adjusted to Downside.
The downside adjustment for the May position filled for 4.85. Adjustment details are:
BOUGHT RUT May 1260 Put, 26.45 debit.
SOLD RUT May 1210 Put, 9.90 credit.
SOLD RUT May 1240 Put, 18.10 credit.
May 1190 Put, 6.40 debit.
Net debit (all four legs): $4.85
The graph of the adjusted position is below:
RUT May Iron Condor after downside adjustment:
The position summary after the adjustment is as follows:
SHORT May 1280 Call
LONG May 1330 Call
SHORT May 1240 Put
LONG May 1190 Put
The position is now a 40 point wide Iron Condor.
The next adjustment trigger point will be at either short strike. Since this position has already been adjusted twice, we will evaluate the status if RUT approaches either short strike to determine if it is wise risk management to make a third adjustment, or recommend to exit the position.
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,