IWM trade ideas
Opening (Margin): IWM December 23rd 222.5/258 Short Strangle... for a 3.42 credit.
Comments: The highest implied volatility broad market exchange-traded fund on the board (when hasn't it been for the past year?). Going delta neutral, looking to take profit at 50% max/manage sides on test or approaching worthless. 10.5% ROC as a function of buying power effect; 5.2% ROC at 50% max.
Closing (IRA): IWM November 19th 204 Short Put... for a .10 debit.
Comments: In for 1.87 (See Post Below); out for .10 here. 1.77 ($177) profit.
#IWM finally broken out of channelFinally, after consolidating within this box structure all year, small cap stocks have broken out and look to have at least 10% upside from the breakout level before the full channel target is reached.
We've waited almost a year for this setup, time to buyIt's been a long wait for this consolidation to break... and it finally has. Risk on sentiment around the market, underweight institutional asset managers... time for small caps to fly!
$IWMBroke out of 10months long base, looking good to add long, of at all it retest 233-234 back will take long position
9 Month Consolidation is over -Bull Run Coming9 Month Consolidation is over -Bull Run Coming, Buy TNA
Market Maker Sweet Spot CalculationsIWM Market Maker Sweet Spot Calculations
NOVEMBER 2, 2021
How do we get to the Sweet Spot
Derived from the amount of OPEN INTERESTS multiplied with 100 shares per contract times mid price gives us a good estimate what money is at stake and where the Market Maker will make the most money, or better said will lose the least! This is the spot where the market maker wants to be every Friday when there is Option Payday.
The further text will not fit here since this introducing broker has no money to implement a nice editor or allows content provider to publish content without paying. Also for violating their rules some of my blogs got hidden. You will find me on Twatter.
Will it break?It will be interesting to see if the Russel can hold this level and move up to the next price target I have here, or move back down to support.
IWM - Do the shorts hold or cover? - For seven and a half months now, the small cap index has been rangebound between 2350s and 2080s
- In the futures market, non-commercials are heavily net short Russell 2000 mini-index futures. As of last Tuesday, they were sitting on 54,431 net shorts
- If small-cap bulls manage a breakout, the likelihood of non-commercials covering their shorts is decent – particularly considering the seasonality factor. The only thing is, there is still two months left before the year is out. So, it is equally possible stocks take a breather, suffer a mild selloff, hold support and then take off for a year-end rally. In this scenario, how far the rally goes will have a lot to do with if shorts give up or stay put
- Dow Jones Transport is breaking out today up nearly 11% at the time of publish, Small Caps often follow Transports.
hedgopia.com
___________________________
✅ If you found this idea useful, hit the like button, follow & share.
✅ Follow for swing ideas, trade setups and weekly 0DTE income trades.
✅ Don't hesitate to post comments, opinions and questions.
💸 WHAT IS 0DTE TRADING?
The Chicago Board Options Exchange (Cboe) lists weekly options on the S&P 500 Index (SPX) with expirations every Monday, Wednesday, and Friday. Most options expire worthless and we take advantage of this by selling credit spreads to collect premium. This strategy allows us to profit if the market moves up, down or doesn't move at all. See profile to learn more!
$IWM - Breakout with continuationIWM finally broke out yesterday after a year of consolidation. We could see a retest of the breakout but ultimately it was a nice signal with follow through today. You can also use actively managed funds to get access without as much risk as an individual company name. There are many great mutual fund/ETF funds that I personally like and have been/will be using in client accounts. New 52 Week high was also reached today which helps to confirm breakout. If you want to add a stop loss around the $225-230 area in case this is a false breakout, it would make sense. The measured move is $280+ and I am looking for $300+. Good luck to you!
IWMWe might see a new run in IWM should it break this trading range. Break to the upside supported by the shortfall.
IWMIWM looking very good. Can it finally breakout? A close above 234.42 will easily take IWM to 261 range.
IWM iShares Russell 2000 ETF small capSeasonality November-December
The iShares Russell 2000 ETF composed of small-capitalization equities.
PLAN: Wait for conformation on a back test of the breakout of all time high. Target 260
Dividend 12/13
Top 10 Holdings - total weight 3.33
AMC ~ 0.6
CROX
OW
TTEK
LSCC
NTLA
CAR
SLAB
SAIA
Small caps are waking up! Knocking on all-time highs door.After nearly 9 months of consolidation we're seeing the Russell 2000 wake up here into the end of the year while volume picks up. Keep an eye on this weekly close for breakout confirmation.
$IWM Going to send it.Symmetrical triangle with a large consolidation base. All VWAPs and EMA clouds are under and supporting price. Current price is starting to emerge out of volume profile as well. Should be a good rally although macros like these tend to be multi-month holds at a minimum to play out well.
