RUT July Iron Condor Closed.
With RUT hovering just below the short put strike the day before the long weekend, I took the opportunity to exit the position for breakeven. A summary of the position and closing details, follow:
SOLD RUT July 1290 Call, 17.75 credit.
BOUGHT RUT July 1340 Call, 1.05 debit.
SOLD RUT July 1290 Put, 16.40 credit.
BOUGHT July 1240 Put, 4.90 debit.
Order was filled as an "Iron Condor" for $28.20 net credit (all four legs).
Additional Order to cut Deltas on upside:
BOUGHT RUT June 1340 Call
Order for extra long call was filled for $1.30.
On Friday, June 26, RUT reached the downside adjustment trigger point of 1280, and the position was adjusted as follows:
BOUGHT RUT July 1290 Put, 25.10 debit.
SOLD RUT July 1240 Put, 8.00 credit.
SOLD RUT July 1270 Put, 16.10 credit.
BOUGHT July 1220 Put, 5.00 debit.
Net debit (all four legs): $6.00
Monday's sell-off caused RUT to reach the second downside adjustment trigger price of 1270, and the position was adjusted once again as follows:
Second downside adjustment June 29:
BOUGHT RUT July 1270 Put, 21.65 debit.
SOLD RUT July 1220 Put, 7.10 credit.
SOLD RUT July 1250 Put, 14.40 credit.
BOUGHT July 1200 Put, 4.40 debit.
Net debit (all four legs): 4.55
At the time this second adjustment was made, I posted that the next trigger was at either short strike. Because the position has already been adjusted twice, I wrote an article yesterday where I felt the best risk management was to exit the position before the short put strike went too far in the money. With RUT hovering just below the short put strike ahead of the Holiday weekend and Greek situation unresolved, the position was closed today as follows:
Position Closing July 2:
BOUGHT RUT July 1290 Call, 4.20 debit.
SOLD RUT July 1340 Call, .35 credit.
BOUGHT RUT July 1250 Put, 19.55 debit.
SOLD RUT July 1200 Put, 7.40 credit.
Net debit (all four legs): 16.00
SOLD RUT July 1340 Call, .15 credit
This closing resulted in a pretty much a breakeven for the position (+$50 gain) With all the uncertainties surrounding Greece, I am willing to accept this rather than risk the trade moving further against me. We will look forward to the next trade entry for the August cycle sometime the week of July 20.
As always, stay keen on your risk management and trade carefully,