RUT December Iron Butterfly Adjusted
The upside adjustment for the December RUT position filled for 6.90. Adjustment details are:
BOUGHT RUT December 1140 Call, 32.90 debit.
SOLD RUT December 1190 Call, 8.80 credit.
SOLD RUT December 1160 Call, 21.30 credit.
BOUGHT RUT December 1210 Call, 4.10 debit.
Net debit (all four legs): $6.90
The graph of the adjusted position is below:
RUT December Iron Butterfly after adjustment:
The position summary after the adjustment is as follows:
SHORT December 1160 Call
LONG December 1210 Call
SHORT December 1140 Put
LONG December 1090 Put
The position is now a 20 point wide Iron Condor.
The next adjustment trigger point on the upside as per the guidelines is 1160, and 1140 on the downside. Since we have the extra long call, it may be possible to wait a bit longer to adjust if RUT reaches 1160, depending on the position status and the market in general.
Trade updates will be posted as appropriate.
As always, stay keen on your risk management and trade carefully,