RUT April Iron Condor Closed; thanks to the quiet market today.
Our RUT April position closed a short while ago for just $5 shy of target gain. As this position was already adjusted once to the upside and hovering at a point of a second adjustment, I felt it was a gift to exit the position on a quiet day such as today.
A summary of the position and closing is below:
Original Position Opened March 17:
- SOLD RUT April 1070 Call, 21.20 credit.
- BOUGHT RUT April 1120 Call, 3.00 debit..
- SOLD RUT April 1070 Put, 21.50 credit.
- BOUGHT RUT April 1020 Put, 7.70 debit.
Order was filled as an "Iron Condor" for $32.00 net credit (all four legs).
BOUGHT RUT April 1130 Call.
Call order was filled for $1.70 debit
Margin/Risk is calculated by the width of the wings ($5,000), less credit received plus the cost of the long call.
Margin/Risk for this trade: $1,970.
Target Gain: 5% of the gross margin ($250/contract)
Max loss: 10% of the gross margin ($500/contract)
RUT rallied up to the first upside adjustment the day the position was entered. The position was adjusted the following day (Friday, March 18), as follows:
Upside Adjustment March 18:
BOUGHT RUT April 1070 Call, 33.05 debit.
SOLD RUT April 1120 Call, 6.90 credit.
SOLD RUT April 1090 Call, 20.10 credit.
BOUGHT April 1140 Call, 2.65 debit.
Net debit (all four legs): $8.70
Position Closed March 28:
BOUGHT RUT April 1090 Call 11.60 debit.
SOLD RUT April 1140 Call, .55 credit.
BOUGHT RUT April 1070 Put, 11.80 debit.
SOLD RUT April 1020 Put, 2.75 credit.
Net debit (all four legs): $20.10
SOLD RUT April 1130 Call, .95 credit.
Position summary: +$245, 4.9% of the gross margin of $5,000.
As always, stay keen on your risk management and trade carefully,