RUT February Iron Butterfly Adjusted to Upside
The upside adjustment for the May position filled for $8.10 debit. Adjustment details are below:
BOUGHT RUT February 1590 Call, 33.50 debit.
SOLD RUT February 1640 Call, 8.80 credit.
SOLD RUT February 1610 Call, 21.10 credit.
BOUGHT RUT February 1660 Call, 4.50 debit.
Net debit (all four legs): $8.10
The graph of the adjusted position is below:
RUT February Iron Condor after upside adjustment:
The position summary after the adjustment is as follows:
SHORT February 1610 Call
LONG February 1660 Call
SHORT February 1590 Put
LONG February 1540 Put
LONG February 1730 Call bought at trade entry to cut position delta.
The position is now a 20 point wide Iron Condor.
The next adjustment trigger point will be either short strike, depending on overall position status and market conditions. The upper breakeven at expiration is now at 1633.51, so we will wait a bit beyond the short strike before making a second upside adjustment. This will, of course, depend on the overall market and position status.
Trade updates will be posted as appropriate.
As always, stay keen on your risk management and trade carefully,