The major indexes all traded close to sideways with lower volume today. The Russell 2000 index closed at $479.27. I took advantage of the little bit of upward motion this morning and closed the put spreads remaining from my July iron butterfly; I closed the 450/480 put spreads for $7.85 for a $1,750 loss. I had closed the call spreads for a $3,300 gain Tuesday; so the net gain on the position was $1,550 or 17%.
I also closed the 570/580 call spreads in my Aug iron condor today for $0.25 or a $1,600 gain. If we have a strong day in the market within the next few days, I will re-establish my call spreads. I don't feel too exposed with the put spreads since I have the long Sep $430 puts as a hedge.
It is interesting that the RUT has paused here in the neighborhood of support levels formed in early May. If we have some definitive moves upward from here, I will breathe a sign of relief and re-establish new call spreads for my condor. If it breaks support, we may be in for a severe leg downward. Those of you who follow chart patterns may see the head and shoulders pattern on the RUT and the SPX. That is traditionally seen as a topping pattern, so that would predict breaking support and forming another leg downward. But if that happens, I am hedged and will close the remaining spreads of my condor for much less than an average month's credit. That is risk management and it's essential for managing iron condors.