Small Account Trader PRO Alert: XBI 12 May Adjustment

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.

 

TRADE ADJUSTMENT

 

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