Option Investor
Newsletter

Option Writer Update

HAVING TROUBLE PRINTING?
Printer friendly version

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.

Option Writers Newsletter Archives