RUT April Iron Butterfly Adjusted to Downside

The downside adjustment for the September position filled for $6.50 debit. Some traders may choose to wait until later in the day, but I moved forward as recommended earlier this morning.. Adjustment details arebelow:

BOUGHT RUT April 1390 Put, 37.10 debit.

SOLD RUT April 1340 Put, 14.20 credit.

SOLD RUT April 1370 Put, 25.80 credit.

BOUGHT RUT April 1320 Put, 9.40 debit.

Net debit (all four legs): $6.50

The graph of the adjusted position is below:

RUT April position after downside adjustment:

The position summary after the adjustment is as follows:

SHORT April 1390 Call

LONG April 1440 Call

SHORT April 1370 Put

LONG April 1320 Put

LONG September 1480 Call bought at trade entry to cut position delta.

The position is now a 20 point wide Iron Condor.

The guidelines call for the second adjustment, if necessary, to be made at either short strike. The expiration breakeven on the downside after the adjustment made today is 1345, so we will watch carefully and consider adjusting for the second time if RUT drops below 1350 - 1355. Of course this will depend on overall position status and market conditions.

Trade updates will be posted as appropriate.

As always, stay keen on your risk management and trade carefully,

Dot Hazlin