RUT August Iron Butterfly Adjusted to Downside.
The downside adjustment for the August position filled for 6.30. Adjustment details are:
BOUGHT RUT August 1260 Put, 32.40 debit.
SOLD RUT August 1210 Put, 11.60 credit.
SOLD RUT August 1240 Put, 21.90 credit.
BOUGHT August 1190 Put, 7.40 debit.
Net debit (all four legs): $6.30
RUT was trading at approximately 1238 when the order filled.
The graph of the adjusted position is below:
RUT August Iron Butterfly after downside adjustment:
The position summary after the adjustment is as follows:
SHORT August 1260 Call
LONG August 1310 Call
SHORT August 1240 Put
LONG August 1190 Put
LONG August 1320 Call to cut deltas at trade entry
The position is now a 20 point wide Iron Condor.
The next adjustment trigger point will be if RUT reaches 1230, 10 points past the current short put strike of 1240. If RUT reaches 1230, we will evaluate whether to make a second downside adjustment, or exit the position.
Trade updates will be posted as appropriate.
As always, stay keen on your risk management and trade carefully,