RUT May Iron Butterfly Adjusted
The upside adjustment for the May position filled for $8.81 debit. Given the strength of the move this morning, I felt it was best to move forward with the adjustment in case the trend continues for the day. Adjustment details are:
BOUGHT RUT 1130 Call, 30.26 debit.
SOLD RUT May 1180 Call, 5.80 credit.
SOLD RUT May 1150 Call, 17.80 credit.
BOUGHT May 1200 Call, 2.15 debit.
Net debit (all four legs): $8.81
The graph of the adjusted position is below:
RUT May Iron Condor after adjustment:
The position summary after the adjustment is as follows:
SHORT May 1150 Call
LONG May 1200 Call
SHORT May 1130 Put
LONG May 1080 Put
LONG May 1200 Call bought at trade entry to cut position delta.
The position is now a 20 point wide Iron Condor.
The next adjustment trigger point will be either short strike, depending on overall position status and market conditions.
Trade updates will be posted as appropriate.
As always, stay keen on your risk management and trade carefully,