The XBI continues to trade higher even with some intra-day bounces. Time to manage this position by rolling our XBI 12 May iron condor puts up and into a butterfly. You can trade this as one roll trade for a net credit of around 0.75. We have written the trade up below as two parts … closing the current put leg and opening a new put leg.
SPDR S&P Biotech ETF (XBI): 82.75
TRADE 1: CLOSE the XBI 12 May iron condor put leg for a net debit of around 0.03 to 0.05
BTC the XBI 12 May 70 put
STC the XBI 12 May 65 put
TRADE 2: OPEN the XBI 12 May iron condor put leg for a net credit of around 0.78 to 0.82
STO the XBI 12 May 81 put
BTO the XBI 12 May 76 put
Note: Make sure you roll to the same 12 May expiry date. We entered this trade with a 1.60 credit and should net around 0.75 for a total credit to manage of around 2.35.
Master Portfolio: 5 contracts