RUT September Iron Butterfly downside adjustment filled.
The downside adjustment for the September position filled for $6.05 debit. Adjustment details are below:
BOUGHT RUT September 1390 Put, 33.05 debit.
SOLD RUT September 1340 Put, 13.60 credit.
SOLD RUT September 1370 Put, 23.10 credit.
BOUGHT RUT September 1320 Put, 9.70 debit.
Net debit (all four legs): $6.05
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 1390 Call
LONG September 1440 Call
SHORT September 1370 Put
LONG September 1320 Put
LONG September 1460 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 already close to the short strike of 1370, we will let the position work a bit before acting too quickly. The new downside breakeven point is 1345 so there is a bit of room.
Trade updates will be posted as appropriate.
As always, stay keen on your risk management and trade carefully,