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 first adjustment: $884
Price at 2nd adjustment: $895.65
Price at 3rd adjustment: $907
Price at this adjustment: $904
Current Position:
[private_monthly]
short -2 RUT Feb13 820 puts
long 2 RUT Feb13 810 puts
[/private_monthly]
Reasoning: Putting a bear call spread back on. Current greeks are:1.3 delta, 2 theta, and -5 vega. This adjustment will change the greeks to: :-22 delta, 21 theta, and -58 vega. I'm also going to put in a GTC order to roll the put spread. The new upside stop is at[private_monthly]around $915 and the downside stop will be at $850 upon fill into the new put position.[/private_monthly]
Trade Adjustment Details:[private_monthly]
STO -3 RUT Feb13 930 calls
BTO 3 RUT Feb13 940 calls
for a min net credit of $1.20 per contract. (day order, limit order). The current mid is $1.30. Try for mid less .05.
then
BTC -2 RUT Feb13 820 puts
STC 2 RUT Feb13 810 puts
STO -2 RUT Feb13 840 puts
BTO 2 RUT Feb13 830 puts
for a min net credit of $0.25 per contract. (GTC, limit order). The current mid is $0.17.
Max Risk: $2,480
Max Reward: $235 or 9.4%[private_monthly] between $840 and $930[/private_monthly] by Feb 15[private_monthly]
Profit Range: $840 to $930 by Feb 15
Suggested Upside stop: @ $915
Suggested Downside stop: $850
[/private_monthly]
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