Buying puts at price against 20sma, very low riskHigh price near open was right at 20sma. So puts bought near 219 will have close stops. Suggestions are 219.21, 219.39, and 219.51. I am using 21Jan and 18Feb expiry dates.
IWM trade ideas
IWM SHORTShort AMEX:IWM
Very likely we see a crash this week to the 200 level.
I am playing off of the current market conditions and rising ECONOMICS:US10Y yield, etc..
IWM Put Credit Spread (see related) into a ICIWM continued to fall today, so I decided to look on the call side to turn this into an Iron Condor.
Why?
1. Condors do not increase margin over a spread
2. IWM has been range bound
3. Large cushion past 2 resistance points
4. Additional Credit recieved
Opened Feb 2nd 236/238 IC for a 0.22 cent credit.
$IWM Potential Head and Shoulders Bottom?$IWM potential head and shoulder bottom early in 2022?
Holding $211 (right shoulder low) on a closing basis is critical for this patten to hold.
Open mind to all possibilities.
IWM - is stochastic warning of a major support break?IWM has been rangebound for almost one year now. Price was around highs of 170 before the "Covid drop." The 212 area is strong support, but it may break soon. Since price broke out of the upper resistance and fell right back into range, a break of support may soon follow.
Let me explain how I use stochastic %K warning signals, which usually lead price movement. My custom setting is 10-period %K and 7-period %D (I do not use D-slow), which I find to work well for my day and short swing trades. When %K (blue line) drops from above 80 to under 20 in 2-3 candles, it warns of more selling, and the corresponding price candles are usually innocuous. Usually I look for price to bounce first and then make a significant drop, as happened at the end of October (white oval). %K gave a warning signal and was followed by a quick reaction bounce before a larger selloff. Sometimes, as is happening now, %K will give a warning and it is followed by lower RSI and continued selling. This signal does not work 100% of the time, but I use it regularly with high success to enter long option trades. Also, the same is true in the upwards direction; a sharp rise in %K from under 20 to over 80 signals a stock will soon make a significant move up.
On 6 Jan I bought two put positions when IWM was 218-219: 21Jan 215 strike and 18Feb 210 strike. With markets dropping sharply right now, wait for a good entry. IWM should retest 212 and if it bounces up again instead of breaking support then I have plenty of time to exit Feb puts without a big loss.
$IWM LevelsBased off close on 01/07
Levels still valid
Breakout zones act as weak zones of supp/resis
Breakout zones:
$216.44
$215.52
Bull PTs:
$217.74
$218.87(pit stop)
$219.9
$221.18(pit stop)
$221.91
Bear PTs:
$214.87
$214.41
$213.41
$212.15
$211.19
Rolling (IRA): IWM January 21st 200 Short Put to February 194... for a 1.18 credit.
Comments: More IRA housekeeping. Here, rolling for duration for a realized gain and to the strike paying at least 1% of the strike price in credit. I've collected 2.35 (See Post Below) + 1.18 or 3.53 so far.
The Russel 2000 Looks HorriblePlaying around with EWT and the Russel 2000 looks like it completed a wave 3 and has been distributing along with a bear trap breakout in early November when we got a high CPI print and the Fed said they will accelerate the taper. Macd cross as well...
210/208 IWM Put Credit SpreadIWM is one of my favourites due to its range in the last year. I have played this range many times with credit spreads and Condors.
Trade setup:
Simple Put Credit Spread here opened for a 0.205 credit. Goal with these trades is to be a minimum of 10% RoM and no longer than 30 days.
Entry Criteria:
1. Red day, for increased premiums
2. Trading within a range (clear)
3. Short put is far enough away (see multiple support points lower)
4. Credit received meets RoM (Return on Margin) criteria.
IWM shrt update shrt 233.61Lets look daily stochs srating roll over again look vol more selling then buying
Lets look see t cannot get above 100 200 day and hold staying shrt still small shres 210 took 3/4 off from 233.61 great shrt.
lets look know weekly starting to roll up, so I took some off still shrt
IWMThe iShares Russell 2000 ETF seeks to track the investment results of an index composed of small-capitalization U.S. equities.
IWM Range seems to be that IWM is stuck between the 38 and 50 wouldnt look for anything until one breaks i personally would like to see a move higher
Not financial Advice
IWM, Round #2, Fists Up!?Here comes IWM again, does it 'cojones' this week to run with the big boys or lag again back...? time will tell...
NOBODY RINGS THE BELL AT THE TOP RING RING RING WAVE B TOP From an EW view and the fact we thrust up out of a 8 month triangle I had hoping for more upside .But I feel and looking at the fact the nyse is nearing its long term target fib projection for wave 5 THE IWM looks to be ending what could be wave C up to end wave B top into .50% retracement DO NOT BE LONG THIS INDEX
Closed: IWM January 28th 219C/231P Short Strangle... for a 16.48 debit.
Comments: Total credits collected of 16.48 (See Post Below); scratching it out here for exactly that amount. It's possible that I could've still made money on this trade since price was in-between the strikes of my inverted setup, but my preference is to look to scratch these out if given the opportunity and then redeploy the buying power in something more productive from an implied volatility and probability of profit perspective rather than hang out in them attempting to make them winners.
IWM decision making time the 38 area need to continue being a base for move up (cant sit here much longer)
break 38 likely deeper pull back and more consolidation
Can IWM continue with the upward momentum and fill the gapSPY has been quite strong the last couple of days but the same cannot be said about IWM. However, today IWM was able to follow SPY. Bounced off the 211-212.5 support and ran higher. It could next test the resistance at 220.
The question is, can it fill the gap at 226-230? The answer is not so fast as there are two more resistance above 220 and near/below that gap. The first being 225 and the next being 227.5. Unlike SPY (which has already broken through the last resistance before ATH), IWM has a lot of work to do to even think of retesting the ATH (It is a long way for now).
$spy $iwm Place your betsWE have a legit top in place and it rejected overhead resistance yesterday. Will it follow $spy or will spy follow it back down? Place your bets
Do you feel it?are we seeing a moment of cool down on IWM? if we are this is how i think this thesis could play out like my drawings but if you agree please drop a like!
cheers
IWM time to retrace before going upHello Hello people.
Back with some conviction with this trade. Monthly fib in Red, Weekly in Blue and short term in Pink.
Last time the ride was good upto 222 which I posted last week. Now it's look little overextended and that gives some shorting opportunity.
A safe entry is below Blue fib line 222.40 and there are a lot of places to take profit as down as Blue 23% fib line 217. What's the stop loss probably 224.5
do your DD and good luck.
IWM: See You at Tha Crossroads IWM is at a crossroads. If buyers step in this week they must fill the gap at 228.53 (in blue). 226.67 will be hard, but if they successfully get through and a daily close above 228.53 a run to 240 is not out of the cards THIS WEEK.
