RUT March Iron Condor; Second Upside Adjustment Filled.
The second upside adjustment for the March position filled for $8.35 debit. Adjustment details are:
BOUGHT RUT March 1030 Call, 23.55 debit.
SOLD RUT March 1080 Call, 3.60 credit.
SOLD RUT March 1050 Call, 12.90 credit.
BOUGHT RUT March 1100 Call, 1.30 debit.
Net debit (all four legs): $8.35
The graph of the adjusted position is below:
RUT March Iron Butterfly after adjustment #2:
The position summary after the adjustment is as follows:
SHORT March 1050 Call
LONG March 1100 Call
SHORT March 1010 Put
LONG March 960 Put
LONG March 1100 Call purchased at trade entry
The position is now a 40 point wide Iron Condor.
The next adjustment trigger will be at either short strike, depending on position status and market conditions at the time the trigger is reached. Because this position has already been adjusted twice, we will evaluate the trade at the time the trigger is reached to determine if it is a decent risk:reward to adjust for the third time, or exit the trade and move on.
The trade guidelines were most recently published on August 20, 2015, 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,