The Russell 2000 iShare (IWM) has remained one of the more stable indices throughout the recent declines in the broader markets. I am selling two of the June 71 Puts. This trade constitutes a larger allocation than that of a stock because it is an index. We need to sell these for at least $1.00 per contract for the trade to make some sense. The return is lower than our normal trade too. But I plan on selling the calls to fix that problem.
The above chart is showing that our best support is in the 70.80 - 71.05 range. That is why we are selling the 71 Puts. The resistance is at the 200 DMA (blue line). If we get another push up to 74 - 75 we will be selling the calls. But you never know, we might end up selling earlier so stay tuned.