Closed (IRA): IWM November 18th 163 Short Put... for a .57 debit.
Comments: Collected a total of 2.72 with rolls on this one. (See Post Below). Out for .57; 2.15 ($215) total profit.
IWM trade ideas
Closed (IRA): IWM December 16th 145 Short Put... for a .76 debit.
Comments: (Late Post). Collected a total of 2.11 in credits. (See Post Below). Out today for a .76 debit. 1.35 ($135) profit.
This leaves me with two rungs -- the November 18th 163 (currently 14 delta) and the November 18th 173 (currently 33 delta), for a total of 44 long delta. Both of these are hedged off with a long put vertical in IWM (See Post Below), which is currently marking at -74 delta. I'll be rolling out the short leg of the diagonal tomorrow, which will decrease the short delta slightly, after which I will look to see whether I should add back in IWM long delta to make sure that I'm not too short/directional in this position. (33 long - 74 short = -41 delta). As part of this consideration, I also need to look at my portfolio delta as a whole to see whether it's okay to keep the IWM position net delta short, since it enjoys a close correlation with SPY (.95 3-month).
Since it kind of drives me slightly bonkers to leave positions skewed out (regardless of whether they can do double duty as a closely correlated broad market hedge), I'll probably end up adding some long delta back in.
Short idea #18- Why bet against trend?Hey all, I think IWM is going to drop in November; I am hoping it chugs slightly higher in the coming week as I am looking to short this name. This chart doesn't look particularly healthy, and it is clearly in a downtrend. I see no reason that trend won't stay intact, and I perceive IWM is going to be a very safe short when $SPY reaches $389/share. My predicted move is drawn out.
Rolling (IRA): IWM November 18th 152 Short Put to December 16th... 145 for a .58 credit.
Comments: With the 152 nearly at 50% max, rolling down and out to the strike paying around 1% of the strike price in credit. Total credits collected of 1.53 (See Post Below), plus the .58 here, for a total of 2.11. Realizing a gain, reducing risk, reducing buying power, and improving my break even all in one swoop ... .
IWM and TD Buy SetupIWM formed the reversal pattern with TD Buy Setup at a significant support area. I waited for the bullish price flip signal and decided to use the previous bar as SL. Interestingly, tunnel line and TDST L. is the same level for TP; thus, the following setup has been applied. Don't forget to calculate your position well before trading. Good Luck!
$IWM Small Caps at Inflection PointI don't post a lot about indices because stock setups drive the majority of my decisions.
I leave the general market to folks that r smarter than me.
That said, am aware of inflection points & $IWM small caps is at one.
A level bears want to defend, otherwise, you'll see them panic.
Opened (Margin): IWM 144/154/182/192 Iron Condor... for a 3.34 credit.
Comments: (Late Post). Another "synthetic short strangle" I put on on Friday, with the short legs set up around the 25 delta, the longs out from there to obtain a 50% ROC at max metric. 3.34 credit on buying power effect of 6.66; 50.2% at max; 25.1% at 50% max.
Will primarily look to roll paired legs (short call/long put, short put/long call) to delta balance. For example, the short call finished the day in .52/$52 worth of profit, the long put .43/$43, so I would look to roll the short call and long put down simultaneously to lock in that realized gain and to delta balance.
TOP WAVE STRUCTURE I am still in 100 % CASH > I loved how we held my 3578 .But I am ok with letting this trade show itself >I hit my min target 3511/3490 into the time cycle >BUT I need to see Mr Market show me the MONEY still have to get past the 20/22 then I will be happy . Best of trades ! WAVETIMER
Short the RussellThe market is perpetuating low risk taking which makes the Russell a better broad index short than the S&P500. There's more room to the downside for this one to play out. We suggest a smaller position to which one can add incrementally after it makes it's move. The stop loss can also be moved closer to Breakeven to improve on the Ratio.
What is next?IWM gives us mixed signals.
It gives both bearish and bullish signals, which can be disturbing, but I have a strategy for that too...
But first let's analyse the chart.
A symmetrical triangle is forming after a huge seloff.
Meanwhile, the weekly S2 pivot point (165.77) and the POC (168.51) are squeezing the price into a tighter range.
The tighter it squeezes, the bigger the breakout will be.
At the same time; MACD shows a regular divergence, which is bullish.
The RSI was oversold(<30), now it is back above 30 and rising, which is also a bullish sign.
On the other hand, we are still in a downward trend, so a continuation is possible.
It supports the fact that today's green candle is low in volume, which means that participation is low.
Whatever the situation, I expect a huge breakout in one direction or another.
In my opinion, the "straddle" option strategy is best suited to this situation.
I am playing the 18 Nov 22 169 straddle.
Support: 165.77, 155.58
Resistance: 168.97, 172.63, 178.24
IWM is basing, don't get bearish yetHey all, IWM has stood out to me for both its relative strength despite the dump into the end of September and the basing pattern it has made at a key level. I was trying to play a bounce early last week, and though I was initially up, I am now either red or neutral on every position I have longed, except for IWM, which I am up on *barely*. I expect there to be a bounce across markets in October; the question, in my eyes, remains when & how substantive; if I had to answer those questions now, I think we put in a bottom early this week, and I am looking for a roughly ~9% bounce on the S&P. As my key reference point, I am looking to 2008. I think we have a ~9% deat cat(S&P) bounce before an accelerated sell-off, similar to 2008. I think trading long here on the Russell is a very solid risk:reward trade.
IWM if you lose 160's If you lose the support and bottom made today during the sell-off. Then i see no real help maybe just a pit stop at 150 ranges before ending up in the 140's.
HOWEVER, it looks like support has held and we should be getting close to seller's exhaustion. I'm looking for a bounce back towards 175 range but not to exceeed 190 before running into overhead R.
