IWM - 6/19 expiry 135 calls or 110 puts

4 Mei 2020

Today's daily candle is showing indecision thus far. I am watching daily and 30min charts. There is a support line at 123.84. While daily stochastic is over RSI, RSI is under 50 still on 30min chart. I am leaning towards calls but will wait until Tuesday to open a trade.

5 Mei 2020

Dagangan aktif

Opened Jun 19, 110 puts @ $2.10.
While priced moved higher today I see on 30 min chart there is cloud resistance and the lower open between April 29-30 created a sharp stochastic %K drop (from over 80 to under 20). I use this as a "warning" signal of a larger move down to come.
On the weekly chart, there is room to move up to the 20SMA, so this is a caution note. Economic data later this week will give support to a return to highs or it will undo the recent market gains. IWM price will be affected by this data.