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I am writing this just before the market closes today; the Russell 2000 index (RUT) stands at $494.03.

I closed the remaining put spreads of my July iron condor today. You may recall we established this trade on June 12 and closed the calls yesterday for a $2,800 profit. With the market's upward action today, I was able to close the put spreads for $2.20, for a $1,500 loss; thus our condor achieved a net gain of $1,300 on 20 contracts, or 9.8% in 12 days. Now, you may wonder why I closed the puts so aggressively when the market was moving away from those spreads. The answer is: whenever I close one half of a condor, I am especially aware that I now am exposed to the market continuing to move in that direction. When I have both my call and put spreads in position, and the market moves strongly downward, my puts are in trouble, but my call spreads are becoming more profitable and hedging my position, i.e., they are softening the blow to my profit/loss. But once I close those calls and take my profit on that side, I am exposed if the market continues downward, so I am aggressive in closing the remaining position in these situations. And 10% in 12 days is nothing to scoff at. At the beginning of this trade, we planned to be in the trade for about two weeks; as it turned out, that was a good prediction.

In the meantime, our iron butterfly at 450/480 and 530/560 stands at about $800 of profit, delta = $33 and theta = $121. Our theta/delta ratio is back above 3:1, a good spot. So we will continue to hold this position.