RUT June Iron Butterfly downside adjustment filled.
The downside adjustment for the June position filled for $6.10 debit. Adjustment details are below:
BOUGHT RUT June 1390 Put, 37.10 debit.
SOLD RUT June 1340 Put, 15.00 credit.
SOLD RUT June 1370 Put, 26.40 credit.
BOUGHT RUT June 1320 Put, 10.40 debit.
Net debit (all four legs): $6.10
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 1390 Call Call
LONG June 1440 Call
SHORT June 1370 Put
LONG June 1320 Put
LONG June 1480 Call bought at trade entry to cut position delta.
The position is now a 20 point wide Iron Condor.
The guidelines call for the second adjustment to be made if RUT reaches either short strike. However, since RUT is slightly below the new short put strike of 1370, we will let the position work a bit before acting too quickly. The new downside breakeven point is 1344 so there is a little room.
Trade updates will be posted as appropriate.
As always, stay keen on your risk management and trade carefully,