Our SMH 16 Sep adjusted iron butterfly was helped by the market sell-off on Tuesday and it popped back up yesterday to around 208. Today the SMH is down so we will adjust today but we can do so and pick up another credit.
We collected a credit of 0.98 when we opened the trade as an iron condor. We adjusted the trade on 9/8 to an iron butterfly and collect an additional of 2.32 bringing our net credit in the trade to 3.30. It looks like we can collect between .85 to 1.10 in additional credit with today’s adjustment bringing us closer to 4.20 – 4.40 range of credit to manage the trade.
Rather than try to roll out the individual legs we can close and re-open it in two trades:
Vaneck Semiconductor ETF (SMH): 204.09
TRADE ACTION 1: CLOSE the SMH 16 Sep 200 put / 205 put / 205 call / 210 call for a net debit of around 3.60 to 3.70
STC the 16 Sep 200 put
BTC the 16 Sep 205 put
BTC the 16 Sep 205 call
STC the 16 Sep 210 call
TRADE ACTION 2: OPEN the SMH 14 Oct 200 put /205 put / 205 call /210 call for a net credit of around 4.50 to 4.55
BTO the 14 Oct 200 put
STO the 14 Oct 205 put
STO the 14 Oct 205 call
BTO the 14 Oct 210 call
The 50K Portfolio is trading 3 contracts; the 10K Portfolio is trading 1 contract.