Out of $RUT 910/920 Credit Put spread for .15 debit. Originally received 0.67 credit for it.
— The Lazy Trader (@lazytrading) October 21, 2014
Buy to Close 3 RUT November 920 Put @0.72
Sell to Close 3 RUT November 910 Put @0.57
Debit: 0.15 ($45 for 3 contracts per leg)
I initially received 0.67 credit for this Credit Put spread. Closing it for a 0.15 debit results in a 0.52 gain, or 0.52 * 3 * 100 = $156 in dollar terms for 3 contracts per leg played in the model portfolio.
With this trade, the whole October RUT Iron Condor ended up being a profitable venture despite the adjustment. To recap:
1- August 19 - Sold October RUT 1020/1030/1230/1240 Iron Condor for 1.66 credit. 1.10 credit for the Call side ($220). 0.56 credit for the Put side ($112). In dollar terms $332 in total for 2 contracts per leg.
2- October 10 - Closed 1020/1030 Put side for 2.20 debit. A $440 debit for 2 contracts per leg. The loss on this 1020/1030 Credit Put spread was $328 as originally a $112 credit had been obtained from it.
3- October 10 - Sold the 910/920 Credit Put spread as an adjustment obtaining 0.67 credit playing 3 contracts per leg.
4- October 17 - Monthly expiration. The 1230/1240 Credit Call spread expires worthless for a gain of 1.10, or $220 for 2 contracts per leg.
5- October 21 - Closed the 910/920 Credit Put spread for 0.15, that is a 0.52 gain or $156 gain in 3 contracts per leg. Final result -$328 + $220 + $156 = +$48.
Very small gain, but I take it. Specially in a bad month. Like I said in the Weekend Portfolio Analysis, I will reflect this trade as part of the November cycle as the Puts were November options. I don't want to over complicate the track record in October.
A RUT chart after market close for future reference:
(Click on image to enlarge)
November RUT 970/980 Credit Put Spread
$120 credit. 93% probability of success. 30 days to expiration.
November RUT 1150/1160 Credit Call spread
$200 credit. 75% probability of success. 30 days to expiration.
November SPX 1685/1690 Credit Put Spread
$120 credit. 96% probability of success. 30 days to expiration.
There's still a lot of fight in November and it will be hard to pull off a positive month. My goal is to mitigate the damage as much as possible.
Check out 2014 Track Record