November RUT Iron Condor order filled.
Order executed for this new position:
- SELL RUT November 1120 Calls.
- BUY RUT November 1170 Calls.
- SELL RUT November 1120 Puts.
- BUY RUT November 1070 Puts.
Order was filled as an "Iron Condor" for $33.60 net credit (all four legs). RUT was at 1116.60 when the order executed.
Margin/Risk is calculated by the width of the wings ($5,000), less credit received.
Margin/Risk for this trade: $1,640.
Target Gain: 5% of the gross margin ($250/contract)
Max loss: 10% of the gross margin ($500/contract)
Below is the risk graph of the position as shown on my broker's platform:
RUT October Iron Condor:
The adjustment trigger points for this position are if RUT moves up or down 10 points. Adjustment point on the upside would be if RUT reaches 1130, and the downside adjustment would be at 1110.
For those unfamiliar with the strategy, the trade management guidelines were updated on September 25, and can be found here:
Link to Articles
Trade updates will be posted as appropriate.
As always, stay keen on your risk management and trade carefully,