RUT February Iron Condor Closed.
RUT has been hovering right at the short call strike of 1020 all week; it was suggested earlier in the week to exit the position unless RUT pulled back below 1020. I took advantage of today's drop in volatility to exit the position for pretty much breakeven. I felt it was not worth the risk of carrying over the weekend in the event of a strong move up on Monday.
A summary of the position and closing is below:
Original Position Opened January 19:
- SOLD RUT February 1000 call, 31.40 credit.
- BOUGHT RUT February 1050 call, 9.50 debit..
- SOLD RUT February 1000 put, 30.95 credit.
- BOUGHT February 950 put, 15.00 debit.
Order was filled as an "Iron Condor" for $37.85 net credit (all four legs).
BOUGHT RUT February 1110 Call.
Call order was filled for $.95 debit
Downside adjustment made January 20:
BOUGHT RUT February 1000 Put, 47.20 debit.
SOLD RUT February 950 Put, 24.20 credit.
SOLD RUT February 970 Put, 32.10 credit.
BOUGHT February 920 Put, 15.90 debit.
Net debit (all four legs): $6.80
Upside adjustment made January 21:
BOUGHT RUT February 1000 Call, 36.30 debit.
SOLD RUT February 1050 Call, 12.00 credit.
SOLD RUT February 1020 Call, 24.90 credit.
BOUGHT February 1070 Call, 6.25 debit.
Net debit (all four legs): $5.65
Position Closed January 29:
BOUGHT RUT February 1020 Call, 23.90 debit.
SOLD RUT February 1070 Call, 4.20 credit.
BOUGHT RUT February 970 Put, 6.90 debit.
SOLD RUT February 920 Put, 1.75 credit.
Net debit (all four legs): $24.85
SOLD RUT February 1110 Call, .50 credit.
Position summary: Gain of $10, or basically breakeven
When the position was entered, I cautioned that I suspected this could be a difficult trade. That caution proved to be valid, the trade encountered strong whipsaw market movement in both directions so I consider getting out for breakeven to be a win given the current market environment.
As always, stay keen on your risk management and trade carefully,