It may be necessary to close the RUT May Iron Condor today.
Today's market action is not being kind to our open May RUT position. We have been adjusting the position as the market moved higher; and have made two upside adjustments. As posted when the second adjustment was filled, the position would be evaluated if a third adjustment trigger was reached, at either short strike.
As of this writing, RUT is at 1125, 5 points below our original put strike of 1130. Since we have already adjusted this position twice, I am not recommending a third adjustment. I feel it is better risk management to exit the position and move on to the next trade, rather than adding more capital to this position. The position is currently -5% of the planned margin.
Below is the current risk graph:
RUT May Iron Condor
Some traders may choose to stay in the position; expiration breakeven is still a bit further to the downside at 1116. However, I am recommending the position be closed today unless it appears that RUT will close above the short put strike of 1130.
Closing prices will be posted when the position is exited.
As always, stay keen on your risk management and trade carefully,