It is recommended to adjust RUT Iron Butterfly for the second time.
RUT is drawing close to the next adjustment trigger point of 1120. A recap of the adjustment is below:
Current Position (as adjusted yesterday):
Short RUT October 1160 Call.
Long RUT October 1210 Call.
Short RUT October 1130 Put.
Long RUT October 1080 Put.
The guidelines call for the threatened side to be rolled 20 points. This can be accomplished with one order: "BUY Condor"; in this case all Puts. The adjustment will be:
BUY RUT October 1130 Put.
SELL RUT October 1080 Put.
SELL RUT October 1110 Put.
BUY RUT October 1060 Put.
The adjusted position will now put the short put strike at 1110, and the short call at the original strike of 1160.
The current debit to adjust the position is $5.25, although this will likely change depending on the time it is adjusted. It is recommended to adjust before the end of the day today. Actual fill price for the adjustment will be posted when the order is executed.
As always, stay keen on your risk management and trade carefully,