RUT December Iron Butterfly Adjusted to Upside
The upside adjustment for the August position filled for $6.50 debit, with RUT trading a bit over 1310. I felt I wanted to make the adjustment earlier rather than later, based on market action this morning. Adjustment details are below:
BOUGHT RUT December 1290 Call, 40.60 debit.
SOLD RUT December 1340 Call, 12.80 credit.
SOLD RUT December 1310 Call, 28.10 credit.
BOUGHT RUT December 1360 Call, 6.80 debit.
Net debit (all four legs): $6.50
The graph of the adjusted position is below:
RUT December Iron Condor after upside adjustment:
The position summary after the adjustment is as follows:
SHORT December 1310 Call
LONG December 1360 Call
SHORT December 1290 Put
LONG December 1240 Put
LONG December 1380 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. However, since the upper expiration breakeven is at 1337 and we have the extra long call, I will monitor the position and consider a second upside adjustment if RUT continues higher to the 1320-range.
Trade updates will be posted as appropriate.
As always, stay keen on your risk management and trade carefully,