It may be necessary to close the RUT June Iron Condor today.
Today's market action is not being kind to our open June RUT position. We have been caught in the classic "whipsaw", having to adjust last week to the downside and just yesterday the market reversed to the upside. 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 1133, 3 points above our current call 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 -3% of the planned margin.
Below is the current risk graph:
RUT June Iron Condor
Some traders may choose to stay in the position; expiration breakeven is still a bit further to the upside at 1148. However, I am recommending the position be closed today unless it appears that RUT will close below the short call strike of 1130.
Closing prices will be posted when the position is exited.
As always, stay keen on your risk management and trade carefully,