Small Account Trader PRO Alert: XBI Adjustment

The XBI biotech ETF continues to trade higher even after giving us a couple of head-fakes that it would reverse lower after such a quick run-up. We will need to adjust our XBI 12 May laddered position today.

We collected $1.46 at the open with this position. We adjusted for another 0.84 giving us 2.30 of credit to work with. We can adjust for a net debit of 0.80 to 0.85 … still leaving us with around 1.45 of net credit.

TRADE ADJUSTMENT
SPDR S&P Biotech ETF (XBI):

TRADE 1: CLOSE the XBI 12 May laddered iron condor for a net debit of around 4.60 to 4.70

BTC the XBI 12 May 81 call
STC the XBI 12 May 86 call
BTC the XBI 12 May 81 put
STC the XBI 12 May 76 put

TRADE 2:  OPEN the XBI 16 Jun butterfly out for a net credit of 3.75 to 3.85

STO the XBI 16 Jun 86 call
BTO the XBI 16 Jun 91 call
STO the XBI 16 Jun 86 put
BTO the XBI 16 Jun 81 put

Master Portfolio: 5 contracts