IWM is an Exchange Traded Fund (ETF) which follows the Russell 2000 Small Cap Stock Index. I purchased call options (just regular, no spread) Strike 200 expiring Jan 2022 because I belive IWM has shown consistent bull market uptrend since November, and consistently uses the 10 Day Exponential Moving Average (EMA) as Support. IWM has shown better consistency, in my opinion, than SPY (ETF following S&P 500), and while QQQ (ETF that follows the Nasdaq 100 index) has outperformed most other major indexes in the past few years, IWM's lower prices made it more attractive to me. The growth may be slower than some other indexes; but as my first trading teacher stated, "You don't go broke making money." This may be a boring strategy, but I believe it will still be a profitable one. My stop loss plan is set below the 20 Day EMA. The yellow dotted line is the approximate price per share of stock when I purchased my calls earlier today.
I am not certified or licensed by any individual or institution to give financial or investment advice. I consider myself to be an amateur investor and trader.
I am not certified or licensed by any individual or institution to give financial or investment advice. I consider myself to be an amateur investor and trader.