RUT June Iron Condor Adjusted to Upside
The upside adjustment for the June position filled for $8.38 debit. Adjustment details are below:
BOUGHT RUT June 1110 Call, 23.10 debit.
SOLD RUT June 1160 Call, 3.40 credit.
SOLD RUT June 1130 Call, 12.52 credit.
BOUGHT RUT June 1180 Call, 1.20 debit.
Net debit (all four legs): $8.38
Some traders may choose to wait until later in the day to adjust, depending on your market opinion and trading schedule. I moved forward with our adjustment as I felt the debit to make the adjustment was at a fair price and I was concerned about a further runup later in the day that would make the adjustment even more costly.
The graph of the adjusted position is below:
RUT June Iron Condor after upside adjustment:
The position summary after the adjustment is as follows:
SHORT June 1130 Call
LONG June 1180 Call
SHORT June 1090 Put
LONG June 1040 Put
LONG June 1180 Call bought at trade entry to cut position delta.
The position is now a 40 point wide Iron Condor.
The next adjustment trigger point will be either short strike, depending on overall position status and market conditions. Since this position has been adjusted twice, it will be evaluated if RUT reaches either short strike whether to adjust for the third time or exit the position.
Trade updates will be posted as appropriate.
As always, stay keen on your risk management and trade carefully,