Trade Adjustment : RUT

Trade AdjustmentStock / Symbol: Russell 2000 / RUT

Option Strategy: iron condor
Trade entry date: Aug 17
Price at trade post: $818
Price at this post: $835

Current Position:[private_monthly]
Short -1 RUT Sep12 860 call
Long 1 RUT Sep12 870 call
at an effective credit of $1.02 per contract

Reasoning: Our GTC order to buy back the put portion of this trade triggered yesterday (Sep 5) at a debit of $0.15. Factoring in the realized profit from the puts + the credit from the call spread portion of the trade, our effective credit is now $1.02 on the trade, down from our entry of $1.25 per contract. With RUT trading up towards our upside stop, we’re going to adjust by [/private_monthly]rolling to further out of the money calls and selling another put spread. This adjustment gives us a net delta of -.70 (neutral) and positive theta of 5.70. [/private_monthly]

Trade Details:[private_monthly]
BTC -1 RUT Sep12 860 call
STC 1 RUT Sep12 870 calls
STO 1 RUT Sep12 880 call
BTO 1 RUT Sep12 890 call
for a max net debit of $1.15 per contract (day order, limit order). Current mid is 0.98 so try to get filled for mid + 0.05

Then,
STO -1 RUT Sep12 765 put
BTO 1 RUT Sep12 755 put
for a min net credit of $0.20 (day order, limit order). Current mid is 0.25.

Note: If you’re still in the original 720/710 put spread, then:

BTC -1 RUT Sep12 720 put
STC 1 RUT Sep12 710 put
STO -1 RUT Sep12 765 put
BTO 1 RUT Sep12 755 put
for a min net credit of $0.10 (day order, limit order). Current mid is 0.17.

Max Risk: $988 (adjusted up from $875)
Max Reward: $12 or 1.2% between $765 and $880 by Sep 21
Profit Range: $765 to $880 by Sep 21
Suggested Upside stop: @ $851
Suggested Downside stop: @ $795
[/private_monthly]

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