Stock / Symbol: Russell 2000 / RUT;
Option Strategy: [private_monthly]iron condor[/private_monthly];
Trade entry date: Jan 11;
Price at trade entry: $880;
Price at this adjustment: $895.65
Current Position:
[private_monthly]
short -2 RUT Feb13 920 calls
Long 2 RUT Feb13 930 calls
short -2 RUT Feb13 820 puts
long 2 RUT Feb13 810 puts
[/private_monthly]
Reasoning: Upside stop has triggered. Current greeks are:-15.2 delta, 13 theta, and -51.7 vega. Going to adjust by buying back half of the calls and rolling all of the puts up. This adjustment will change the greeks to: :-4.4 delta, 10.5 theta, and -35 vega. With this adjustment, we'll move the upside stop to [private_monthly]$912 and add a downside stop at $865.[/private_monthly]
Trade Adjustment Details:[private_monthly]
BTC -1 RUT Feb13 920 calls
STC 1 RUT Feb13 930 calls
for a max net debit of $1.40 per contract. (day order, limit order). The current mid is $1.35. Try for mid plus .05.
and
BTC -2 RUT Feb13 820 puts
STC 2 RUT Feb13 810 puts
STO -2 RUT Feb13 840 puts
BTO 2 RUT Feb13 820 puts
for a min net credit of $0.25 per contract. (day order, limit order). The current mid is $0.27. Try for mid less .02.
Max Risk: $1,770
Max Reward: $230 or 13%[private_monthly] between $840 and $920[/private_monthly] by Feb 15[private_monthly]
Profit Range: $840 to $920 by Feb 15
Suggested Upside stop: @ $912
Suggested Downside stop: @ $865
[/private_monthly]
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