The markets slowly traded downward as the day wore on, but most traders were watching from the sidelines. SPX closed at $1324, down $4 and RUT has lost its supremacy, closing down $7 at $834. RUT has now traded below its 2011 high set in mid-February; the next support level is $830. Significantly, trading volume in the S&P 500 hit its lowest level of 2011 at 2.4 billion shares. Trading was down 1% on the NYSE but was up 28% on NASDAQ. After the bell, Alcoa beat earnings estimates but disappointed on revenues; we'll see if that sets the tone for tomorrow's trading.

I removed the hedge on my RUT May iron condor position today. That leaves me with a P/L of - $1,318 and delta = -$34 and theta = +$94. The theta/delta ratio of about three-to-one is excellent. If RUT continues roughly sideways to down for a few weeks (38 days left), we will salvage a profit from this position. That is the advantage of a hedging adjustment rather than closing spreads as the index moves against the position. We remain in the position with an opportunity to close for a gain for the month.