120919 RUT Iron Condors

I’ve been requested to follow a couple of RUT iron condors – a traditional 15-delta trade as well as a CTM (Close to the money) version.

The video contains the trade setup and entry.

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Another link to video

View video

September 19, 2012

Traditional
Collected credit of $250 for the following Dec RUT Iron Condor:
Size: 2-lots
745/755P; 910/920C

CTMOrder entered: 4-lots $4.45 and lowered to $4.40. Nothing done. Will try again tomorrow.

Sep 20

Prices are not as good today.

945am; RUT = 850; RVX = 18

Collected $4.65 for the following RUT December iron condor (4-lots):

790/800P (28 delta)
900/910C (25 delta)

Sep 21

Trade Plans

Major points:
Exit target: Nov 19, 2012
Target Cost to exit: $100 and $200 to $250 (for CTM)
Target profit: $150 and ($215 to $265 for CTM)
Adjustment plan: 35 delta and roughly ATM (for CTM)

Much more detail and discussion in the videos below.

Traditional IC

Alternate link

CTM IC

Alternate link

Sep 27

RUT = 836
Traditional (15-delta) IC: The put delta is 19 and the call, 7. Not neutral, but no reason to modify this position. To exit, midpoint is roughly $4.10

CTM (25-delta): Deltas are 33 and 18. No problems yet. Exit midpoint: $4.25

Both showing small gains. No action recommended.

Oct 10

RUT = 830.17
RVX = 19.17

Traditional IC: Short deltas: 17 and 6; Quote to cover: 1.00 to 2.25. Nice profit so far (collected $250)

CTM IC: Short deltas: 33 and 14; Quote to cover: 3.05 to 4.45. (Collected $465)

No action necessary

Bidding 20 cents to cover 2 lots of 930/940C spread

Oct 16

Taking advantage of today’s rally to try to get our of these trades with a good profit

15-delta iron condor

Initial credit $2.50

Bought call spread at $0.24
Bidding $0.90 for put spread. (no urgency because delta of short put is 13)

CTM iron condor

Market is 2.80 to $4.00

Bidding $3.15 to exit. That would result in a profit of $150. Pretty good for holding less than one month.

Plans: If filled, I’ll move to a Jan position

Oct 23

Delayed adjustment. That is one of he beautiful things about an CTM iron condor. I could have delayed even longer.

Paid $1.70 to roll down to the 750/760P spread.

Oct 29

Bidding 15 cents for 4-lots of the Dec 900/910 C spread.
Neither put spread is in trouble pre-opening.

Nov 1

Closed 4-lots of Dec CTM iron condor.
RUT = 828.
RVX = 20.05

Paid $1.55.
Profit 1.40.
We had made one adjustment earlier.

Why the early exit?
1) Good profit
2) More importantly, the iron condor was slightly off-balance (delta 13 and 6) and was faring well on today’s rally. If I were forced to chose a market direction (I am not so forced), I would choose down. Thus, happy to exit.

Side note: To replace this trade in my portfolio, I added a Jan RUT iron condor. (That is not a trade I am tracking here, although it is mentioned in the forum)

Also getting close to exit for put spread on remaining portion of 2-lot iron condor.
Bidding 75 cents. Was bidding 90 cents on Oct 16.

November 15

The only remaining position is a 2-lot of puts. Originally part of a 15-delta iron condor. I had bid 90 cents to exit earlier, and looking back, that would have been a great fill.

9:02 am; RUT = 770, delta = 42

Decided to roll down and pay a debit.
Also decided that this 2-lot position is so small that I have room to increase position size. Note; Be very careful to increase size ONLY when you are well under your size and risk limit. Even then, the size increase is an option, not a necessity.

Trade:
Covered 2 dec 745/755P spreads @ $3.30
Sold 3 Dec 720/730P spreads @ $1.80; delta 21
Total cost $120.

Position cost: Short these three spreads with a net credit of $330, or $1.10 each.

Nov 20

8:31 am
Covered put spread (10-delta) at 64 cents.

This was a difficult trade to follow. It required adjustments and each side was in trouble at least one. Getting out with a profit is a great result. This trade earned 46 cents, before commissions

Positions closed