RUT has rebounded to almost 1500, we are holding off adjusting the November Iron Butterfly for now.
RUT has come off this morning's lows; and is now hovering very close to the downside adjustment trigger of 1500. Below is the graph of the current positon:
RUT November Iron Butterfly:
The downside expiration breakeven is at 1480 as shown on the graph, so there is a little room yet to the downside. Unless RUT drops again this afternoon, we are not going to make the adjustment today. For any subscribers who decided to make the adjustment earlier today, I would recommend setting the next adjustment trigger points as per the guidelines, at either short strike. Feel free to email me with any questions, as always.
The risk, of course, of not making the adjustment today is another gap down tomorrow morning, and the possibility of having to roll the put spreads 30 points instead of 20 points. It is a trader's choice whether to make the adjustment early or wait, depending on your market opinion.
Updates will be posted as appropriate.
As always, stay keen on your risk management and trade carefully,