It appears that I have been overly bullish with the markets as I was expecting RUT to hold the 855 support level – it did not. Since it did not I ended up making adjustments down on both of the May positions. As I’ve stated earlier, I am playing around with various adjustment techniques to show some of the many different options that are available to us and how they work.
On the May 55 trade I bought 3 – 850/840 put verticals to roll back the 850 short puts. This allowed me to be positioned for a further down move yet kept me positive Delta in case the market bounces as I am expecting it will. Currently the position is down about $600 and is shown below:
On the May method 15 trade, I ended up rolling the 850 butterfly back to 830 again. The current position is down about $150 and is shown below:
The June 55 remains unchanged and is flat at this time.
That’s it for now, happy trading!