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Patience is a necessary attribute of good traders as long as we define it properly. Some investors sit on losing positions, hoping the market will turn in their favor - that isn't patience. My iron butterfly and iron condor positions have now been hedged against further increases in the Russell 2000 Index (RUT) for about ten days. For the past two to three trading sessions, our positions have been sitting near the "tipping point" - not quite at the point of closing the positions and accepting the loss, but not yet at the point of removing our insurance either. Once you have properly hedged your positions, it takes patience to then give the market time to establish a direction that will drive your decision. Patience allows you to trade what the market gives you, rather than jumping into a trade based on your prediction of the market's next move.

RUT closed at $528.70 today after running as high as $531. Pull up the RUT chart and note that the highs on June 8, 9, 10, and 11 were all in this $531-$532 area. So RUT is paused right at resistance. The SPX closed at $957, just above resistance at $950. Today's SPX candlestick was the classic doji, suggesting indecision or a relative standoff between the bulls and the bears.

I decided to add one more contract to my iron butterfly today: one contract of the $530/$580 calls at $14.00 and one contract of the $450/$500 puts at $5.50. This position now stands at a P/L of -$716, delta = -$79, and theta = +$103. My adding the 530/580 calls betrays my expectation that we will either trade sideways at this resistance level or pull back from it. But I still have a reasonable positive theta and a breakeven up at $544, so I have given myself room to be wrong.

My August iron condor position remains pretty much unchanged at a P/L of -$950, delta = -$35, and theta = +$46. So, we patiently wait.