Russell 2000 is showing strong support at the $1940 area.
I think that RUT is a support and resistance play from here, the first target being the $2130 Resistance.
Looking forward to read your opinion about it.
The Russell 2000 index lost all its gains from 2021 and is now at the pick of December 2020.
I expect 2022 to be the year of this index, that has a lot of undervalued gems, like 2021 was they year of the Big Tech with high multiples.
Looking forward to read your opinion about it.
The Santa Rally is set to start on Monday, Dec. 27.
This period gave positive return for the S&P 500 78.9% of the time.
Since 1950, the average return of the Santa rally was 1.33%.
How do you think this will be reflected in the Russell2000 index?
The reasons could be optimism over the new year ahead or holiday spending.
Amazing how A/R and Forks catch important resistance and support.
It looks like RUT is leading the pack and it is like confirmation for the other important indices.
P!
... for a $323/contract credit.
This is my standard 85/75 iron condor setup for skewed instruments like SPY, IWM, QQQ, RUT, SPX, etc. (i.e., short call at the 75% probability out of the money strike; short put at the 85% ... or as close as I can get to those).
As usual, will look to take off the entire setup as a unit at 50% max profit.
RUSSEL 2000 seems in an uptrend continuation. Let's see if it goes straight to the top. If the price breaks the rising trendline the trend is completely changed.
Because I have virtually nothing on from having gone almost entirely flat pre-Brexit, I slapped this bugger on in the NY morning session ... . It's basically a "classic" skewed instrument iron condor, with the short call at the 75% probability out-of-the-money strike for the expiry; the short put at the 85%.
Filled for a $325/contract credit ... .
... for a 1.10 ($110) credit.
Here, I'm adding a touch of long delta into an existing RUT position (an iron condor) for which I do not feel comfortable rolling the short put side up further to protect that particular setup from further upside. Additionally, I get the side benefit of just adding a little long delta to my entire portfolio, which (no surprise) is a...
I'm not going to take this particular trade (as I've already got a RUT IC on at the moment), but figured I'd post one anyhoo while I wait for earnings.
Metrics:
Probability of Profit: (Software's being glitchy here in off hours; should be between 55 and 65%)
Max Profit: $331/contract (nearly 1/3rd the width of the wings, which is what you're shooting for...
For our Options Butterfly Traders:
Here we can see the close from yesterday 23.6.16
Watch how price act on the Forks & Action/Reaction lines.
P!
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Staying with short duration index setups here, so that I can be flexible if any non index premium selling opportunities come along; going with RUT over SPX due to RUT's higher implied volatility ... . (As a smaller, alternative trade, you can look at a similar setup in IWM).
Metrics:
Probability of Profit: 62%
P50: 71%
Max Profit: $340/contract
Max Loss/Buying...
With the centerline, there is also a natural resistance from the past (red zone).
A break of this zone would imply a further move, at least up to the U-MLH.
P!
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What is important on this chart is not the trade!
It is how you can see support and resistance at the lines.
If you know how to use these tools your chance of profit increase dramatically, because all these lines do is follow the law of Action/Reaction - Newtons law.
It's not a holy grale or such. But when something is happening over 80% of time, then we should...
Play the channels. White channel lasted for 3-4 weeks.
I'm unsure if blue or orange channel is correct, what I am sure of is the top of those two channels is right.
