RUT May Iron Butterfly Adjustment Filled.
The second upside adjustment for the May position filled for $8.25 debit, when RUT was trading at approximately 1150. Adjustment details are:
BOUGHT RUT 1150 Call, 18.95 debit.
SOLD RUT May 1200 Call, 2.05 credit.
SOLD RUT May 1170 Call, 9.40 credit.
BOUGHT May 1220 Call, .75 debit.
Net debit (all four legs): $8.25
The position summary after the adjustment is as follows:
SHORT May 1170 Call
LONG May 1220 Call
SHORT May 1130 Put
LONG May 1080 Put
LONG May 1200 Call bought at trade entry to cut position delta.
The position is now a 40 point wide Iron Condor.
The risk graph of the adjusted position is below:
RUT May Iron Condor after second adjustment:
The next adjustment trigger point will be either short strike, depending on overall position status and market conditions. Since this position has already been adjusted twice, it will be evaluated if the trigger is reached whether to adjust again or exit the trade.
Trade updates will be posted as appropriate.
As always, stay keen on your risk management and trade carefully,