Concerns about Europe's banks once again dampened the stock markets. But trading revived late in the day and almost made it back to opening prices before succumbing to selling pressures. SPX closed down $4 at $1204 and RUT gave up $2 to close at $699.  Trading volume fell across the board with 3 billion shares of the S&P 500 changing hands; volume fell 16% on the NYSE and dropped 15% on NASDAQ. The price action on SPX today was encouraging to the bulls. The bears took SPX to $1191 before the bulls stepped in and pushed it back to the opening of the morning. So, one has to wonder if we are building support here for a break-out from this trading range of the past two months. The VIX rose a bit today but ended up closing near its open at 31%.

The unemployment claims data had virtually no impact on trading; for one thing the data are essentially unchanged and, secondly, everyone remains focused on Europe. Initial unemployment claims were 404k, unchanged from last week's 405k and continuing unemployment claims were down 55k to 3670k.

The Oct RUT iron condor position stands at a net loss of $304 with position delta = -$84 and position theta = +$319 (20 contracts). The 740/750 call spreads are under pressure and are keeping this position underwater at this point. The delta of the 740 calls is 10, so we are in pretty good shape as long as the markets don't break out strongly to the upside. The Nov position stands at a P/L of +$740 with delta = -$45 and theta = +$95. The 780/790 call spreads are about one standard deviation OTM.