The Delta of the my short XLE put strike July$76 fluctuated around 0.65 in the last couple of days as XLE was around $75 with about 16 DTE. I had placed the adjustment orders to close the existing position and sell Aug$70.5/66.5p for a credit of about $44 yesterday. But they were not filled.
Today, the Delta seemed to break down 0.65 level (which was my adjustment level) firmly as XLE traded near $74.4. Today, I found the IV for XLE actually dropped a bit even though XLE fell hard. Though this was not desirable for premium sellers, I still sold 41 contracts of Aug$70/66p vertical put spread which has 51 DTE with a credit of $0.43. The return was 10% which met my target. I did not sell the normal $5 width, because the Aug$65p had relatively wider bid/ask spread and the associated return would be under 10% target (credit of $0.48).
To determine the adjustment size, I used my spreadsheet. Basically I rolled out the July spread to August which gave me much more time to receive the desired profit. Again, the closing target is 50% of maximal potential profit of the spread which was described in a previous post. I had not bought any put as insurance at the moment. The rest of the portfolio (SPY) was behaving OK today. I intentionally hold off opening other positions to reduce the capital consumption as the adjustment used a lot of buying power.