Trade Adjustment : IWM

Stock / Symbol: iShares Russell 2000 Index / IWM;

Option Strategy: [Content protected for Monthly members only];
Trade entry date / price: 29 Feb / $103.70
Price at trade post: $109.56;

Current Position:
Long 1 IWM MarWk4 105.5 call
Long 1 IWM MarWk4 100.5 put
Short -1 IWM Mar16 105.5 call
Short -1 IWM Mar16 100.5 put

Reasoning: With our short call in the money (ITM), we’re going to close out the call calendar here. The short put will expire worthless today and the long put will most likely expire worthless as well next week. Next, with an expectation for an increase in volatility, we’re going to add a long iron condor that expires on April 1st. After this adjustment, the Greeks will be: 1.6 delta, -1.4 theta, and 3.2 vega. We’ll be able to exit the trade with an overall profit should IWM be trading either under 106 or over 113 by MarWk5 option expiration.

Trade Details:[Content protected for Monthly members only]

Max Risk: $82 (increased from $50)
Max Reward: $18 or 22% at/under[Content protected for Monthly members only] and at/over [Content protected for Monthly members only]by Apr 1st
Profit Range:at/under [Content protected for Monthly members only] and at/over [Content protected for Monthly members only]
Suggested Downside stop: NA
Suggested Upside stop: NA

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