Keep an eye on the 735 area to see if the RUT can find some support here. With 6 days straight up and 5 days straight down, the probability exist again for another relief rally to the upside.
With this volatility be very careful of any front month trading on Iron Condors as these positions can quickly get attacked. Trading the back months offers some great premium and the ability to exit positions well before expiry with some nice profits generated by the large price moves.
Note the Jan 1, 07 Level of 788 vs the Dec. 31st Level of 766 -- Lots and lots of movement only to close 2.7% lower for the year. Tons of opportunities on this chart for creative option traders.
RUT Daily Chart:
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