RUT December Iron Condor Adjusted to Upside
The second upside adjustment for the December position filled for $7.25 debit, with RUT trading a bit over 1327. 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 1310 Call, 34.35 debit.
SOLD RUT December 1360 Call, 8.90 credit.
SOLD RUT December 1330 Call, 22.20 credit.
BOUGHT RUT December 1380 Call, 4.00 debit.
Net debit (all four legs): $7.25
The graph of the adjusted position is below:
RUT December Iron Condor after second upside adjustment:
The position summary after the adjustment is as follows:
SHORT December 1330 Call
LONG December 1380 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 40 point wide Iron Condor.
The next adjustment trigger point will be either short strike as per the trade guidelines. However, since this position has already been adjusted twice, we will monitor the position closely. It may be better risk management to exit the position and move on, rather than put more capital into the trade. After this second adjustment, the upper expiration breakeven is at 1350.
Trade updates will be posted as appropriate.
As always, stay keen on your risk management and trade carefully,