Credit problems in Dubai sent Asian and European markets tumbling yesterday while we were having turkey with our families. Our markets gapped down at the open today, recovered a little bit and traded sideways for the balance of a shortened trading day. The big question on everyone's mind: will the markets continue down Monday or will today's drop be considered an over reaction? Either the problems in Dubai will be considered more isolated and the market will recover or analysts will see Dubai's problems as precursors to broader global credit issues and the market may correct even further. RUT dropped almost $15 to close at $577 while the SPX lost $19 to close at $1091.

My Dec iron condor on RUT stands at +$730, delta = -$10 and theta = +$137. This market pullback has brought the index almost equidistant between the short strikes. My RUT Jan iron condor  stands at +$80, delta = +$11 and theta = +$64. Now we wait for Monday's response. Are your stop losses in place?