The markets opened up strongly this morning; RUT ran to $597 before pulling back to close at $593 at the end of the day (up almost $6). The SPX actually broke through resistance at $1100 to $1105 but couldn't hold it and closed at $1098.51. As in recent markets, the stock trading was tied inversely to the strength of the dollar. The dollar traded lower this morning, but then strengthened. Gold hit a new record high of $1118/oz before pulling back.

My Dec iron condor on RUT now stands at a P/L of -$350 with delta = -$25 and theta = +$87. I have clipped a shot of this position's risk/reward chart below. Note the effect of the Jan $630 call hedges; the red line is today's risk/reward curve - follow it with increasing price gains on RUT. Do you see how this hedge allows me to stay with this position and allow RUT to run as high as $620-$630 and constrain my position losses to about $2000? The advantage of this type of adjustment is giving the market time to turn back or trade sideways and therefore a chance to salvage my position. So we wait and see.