RUT March Iron Condor reached short call strike; position closed as per the guidelines.
We have been battling the bulls from the day the March RUT position was entered. As I wrote in the weekend update, the exit trigger was to close the position if RUT reached either short strike. This morning when RUT was trading at approximately 1055, the position was closed as per the guidelines. A summary of the original position and adjustments is below:
Original position entered February 18:
- SOLD RUT March 1010 Call, 25.70 credit.
- BOUGHT RUT March 1060 Call, 6.30 debit..
- SOLD RUT March 1010 Put, 29.80 credit.
- BOUGHT RUT March 960 Put, 13.00 debit.
Order was filled as an "Iron Condor" for $36.20 net credit (all four legs).
BOUGHT RUT March 1100 Call.
Call order was filled for $1.15 debit
Upside Adjustment made February 25:
BOUGHT RUT March 1010 Call, 31.20 debit.
SOLD RUT March 1060 Call, 7.00 credit.
SOLD RUT March 1030 Call, 19.20 credit.
BOUGHT RUT March 1080 Call, 2.70 debit.
Net debit (all four legs): $7.70
Second Upside Adjustment February 26:
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
Closing Order March 2:
BOUGHT RUT March 1050 Call, 18.90 Debit
SOLD RUT March 1100 Call, 1.65 Credit
BOUGHT RUT March 1010 Put, 4.70 Debit
SOLD RUT March 960 Put, 1.30 Credit
Net Debit (all four legs): 20.65
SOLD RUT March 1100 all, 1.55 Credit
The closing order represented a loss of ($10), basically a breakeven on the play.
We will move forward with the plan and enter the April position sometime the week of March 14.
As always, stay keen on your risk management and trade carefully,