Trading volume was low today; stock trading results were mixed with modest increases across all of the market indexes. RUT closed at $496.52, up $3.21. This market is still quite volatile and capable of large moves in either direction on the quirkiest of data points, so you must watch your positions carefully. But, in general, we are trading in a choppy, sideways market - ideal for delta neutral income generation options trading.

The iron butterfly I initiated yesterday is sitting essentially at break-even with position delta of -$16 and theta of +$76.

My Aug iron condor stands at a small profit at this point; by all measures this position should be in adjustment mode: the delta of the short $530 calls = 23 and the debit to close the calls stands at about double the original credit. Buying the two Sept $530 calls yesterday was the right move. It was $1,920 well spent for insurance. This buys us time to see if this market is going to continue upward or not.

As you can see from following these trades, three attributes of the delta neutral options trader are essential: 1) patience - much of the time you are just waiting for time decay, 2) specific rules for adjustments, and 3) the discipline to follow your rules.