RUT May Iron Condor Closed.
This morning's quiet start to the day allowed us to exit the RUT May Iron Condor for target. A summary of the position since entry on April 14, and closing details, follow:
- SOLD RUT May 1260 Calls, 22.80.
- BOUGHT RUT May 1310 Calls, 2.90
- SOLD RUT May 1260 Puts, 21.55
- BOUGHT May 1210 Puts, 8.50
Order was filled as an "Iron Condor" for $32.95 net credit (all four legs).
Additional Order to Cut Negative Deltas on Upside:
- BOUGHT RUT May 1320 Call
Order for extra long call was filled for $2.10.
RUT reached the first upside adjustment the following day, and was adjusted as per the guidelines:
Upside Adjustment April 15:
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
On Friday, RUT reached the downside adjustment trigger of 1250. Adjustment details:
Downside Adjustment April 17:
BOUGHT RUT May 1260 Put, 26.45 debit.
SOLD RUT May 1210 Put, 9.90 credit.
SOLD RUT May 1240 Put, 18.10 credit.
BOUGHT May 1190 Put, 6.40 debit.
Net debit (all four legs): $4.85
Position closed April 23:
- BOUGHT RUT May 1280 Call, 7.80 Debit.
- SOLD RUT May 1330 Call, .30 Credit.
- BOUGHT RUT May 1240 Put, 10.35 Debit.
- SOLD RUT May 1190 Put, 3.00 Credit.
Closing order executed as a single order: BUY " Iron Condor" .
Net Debit to Close Iron Condor: $14.85 (all four legs)
- SOLD RUT April 1320 Call.
Net Credit to close Call: $60.
This closing resulted in a gain of $250, 5% of the gross margin and target for the trade.
The next planned entry for the RUT monthly trade will be sometime the week of May 18 for the June cycle.
As always, stay keen on your risk management and trade carefully,