RUT rally continues; December Iron Condor closed.

RUT continues to march higher, and has reached the short call strike at 1200. As I wrote when the third adjustment was made, the plan was to exit the position if the short strike was reached. A summary of the position and closing details, follow:

Original Position:

- SOLD RUT December 1140 Call, 29.60 credit.

- BOUGHT RUT December 1190 Call, 8.00 debit.

- SOLD RUT December 1140 Put, 26.70 credit.

- BOUGHT RUT December 1090 Put, 11.60 debit.

Order was filled as an "Iron Condor" for $36.70 net credit (all four legs).

Additional Order to cut Deltas on upside:

BOUGHT RUT November 1235 Call

Order for extra long call was filled for $1.30.

Margin/Risk is calculated by the width of the wings ($5,000), less credit received, plus the cost of the extra long call.

Margin/Risk for this trade: $1,460.

Target Gain: 5% of the gross margin ($250/contract)

Max loss: 10% of the gross margin ($500/contract)

RUT continued to march up, and the position was adjusted to the upside just one day after trade entry. Adjustment details follow:

Upside Adjustment:

BOUGHT RUT December 1140 Call, 32.90 debit.

SOLD RUT December 1190 Call, 8.80 credit.

SOLD RUT December 1160 Call, 21.30 credit.

BOUGHT RUT December 1210 Call, 4.10 debit.

Net debit (all four legs): $6.90

On Wednesday, RUT continued to rally, fueled by the FOMC minutes. The position was adjusted for the second time on the upside as follows:

Upside Adjustment #2:

BOUGHT RUT December 1160 Call, 27.05 debit.

SOLD RUT December 1210 Call, 5.40 credit.

SOLD RUT December 1180 Call, 16.00 credit.

BOUGHT RUT December 1230 Call, 2.10 debit.

Net debit (all four legs): $7.75

On Monday, November 23, RUT continued to march higher, and the position was adjusted once again as follows:

Upside Adjustment #3:

BOUGHT RUT December 1180 Call, 20.75 debit.

SOLD RUT December 1230 Call, 2.35 credit.

SOLD RUT December 1200 Call, 10.60 credit.

BOUGHT RUT December 1250 Call, .85 debit.

Net debit (all four legs): $8.65

Position Closing November 27:

BOUGHT RUT December 1200 Call, 15.28 debit.

SOLD RUT December 1250 Call, 1.05 credit.

BOUGHT RUT December 1140 Put, 4.10 debit.

SOLD RUT December 1090 Put, 1.15 credit.

Net debit (all four legs): 17.48

SOLD RUT December 1235 Call, 2.55 credit

Net credit: 2.55

This closing represented a loss of $283, or 5.6% of the gross margin. This month was the second month we have had to close the RUT Iron Butterfly for a loss, so we will continue with the trade in the 2016 trade plan.

The next entry for the January cycle will be sometime the week of December 14.

As always, stay keen on your risk management and trade carefully,

Dot Hazlin