As suspected yesterday, today I needed to make the downside adjustment. Early on RUT penetrated the $490 barrier and required action. Everything executed as expected when the trades were triggered. The adjustment quite simple: Remove the spread furthest away and place a new one on the opposite side, thus recentering the trade. Specifically, I removed the 550 strikes and bought new spreads at $470. As you can see, the P&L graph shows us centered again, although there is a price for the last two days' (especially yesterday's) heavy downward move. We are down a little, but there's lots of time to come back, so we'll continue to manage the trade according to the plan.Good Trading...
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