[Closing Bearish Call Legs of Apr Condor on RUT]
Dear Member:
As with the case of SPY, I have been in the Apr condor on the Russell 2000 for enough time (since 3/19 for RUT)to have gained the benefits of the passage of time. In this case, as with SPY, I opened with a credit and was selling time value only. I am now placing an order to close the bearish call side of the condor on RUT to remove some risk and attempt to capture profit. I am placing an order simultaneously to buy to close the Apr 740 calls (RUTDH)and sell to close the Apr 750 calls (RUTDJ) at a debit limit of $0.65. I initially opened the condor for a $2.90 credit so if this order is filled, I make no further adjustment and the index stays above the strike on the short put leg, I will have realized a before commission return on risk of 32% in a month.
DISCLOSURE: At the time of publication, I hold condors for Apr and May on RUT.
Sincerely,
Bill Kraft
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