RUT September Iron Condor Adjusted to Upside
The upside adjustment for the September position filled for $10.25 debit. The order filled when RUT was trading at approximately 1249. Some traders may choose to wait until later in the day to adjust, depending on your market outlook and trading schedule. Adjustment details are below:
BOUGHT RUT September 1240 Call, 22.00 debit.
SOLD RUT September 1290 Call, 2.05 credit.
SOLD RUT September 1260 Call, 10.40 credit.
BOUGHT RUT September 1310 Call, .70 debit.
Net debit (all four legs): $10.25
The graph of the adjusted position is below:
RUT September Iron Condor after upside adjustment:
The position summary after the adjustment is as follows:
SHORT September 1260 Call
LONG September 1310 Call
SHORT September 1220 Put
LONG September 1170 Put
LONG September 1300 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 already been adjusted twice, once in each direction, it will be evaluated if either adjustment trigger is reached 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,