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All of the major indexes traded down today, but last hour buying, similar to yesterday, pared the losses back to around 1%. RUT closed at $548.38. The CBOE Volatility Index (VIX) has risen the past three sessions; a rising VIX suggests rising fear in the market. So we remain in this tenuous trading range, unsure whether it will basically trade sideways or if it is about to fall off the cliff. The rising VIX is measuring that fear.

My Aug iron butterfly sits at P/L = -$2,066, delta = -$86, and theta = +$156. Notice how our theta is slowly building as RUT essentially trades sideways; this is the advantage given the income options trader.

My Aug iron condor has a P/L = -$920, delta = -$21, and theta = +$148. The Sept $530 call we are holding to hedge our 570/580 call spreads is trading at $35 and about half of that is time value. While that is costing us some theta, we can't afford to sell it until the RUT makes a definite downward move. And $148 in theta is nothing to sniff at. So we continue to wait...