I am buying 18Feb puts with IWM over 202. Most volume is at 188 and 195 strikes. I will exit if price gets over 203.50 204.50, 205. Then I will wait and see if IWM moves up to 208-210, or all the way back to daily 20sma, and start a new swing trade.
30m chart shows consolidation wedge, which I am watching for break downwards. Arrows show indicators will move lower again. In strong downtrends, RSI (30m) usually reverses near 60, or in a strong bounce rally it could push up to 65.
Trade active
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Look at 18Feb option volumes and you can see there is very little on the calls side, relative to put volumes. And since posting this chart there was massive buying of 190 puts.
Trade active
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Trade is still valid according to 30m and daily charts. Holding puts. Obvious consolidation on daily. If yield continues dropping markets will too.
Trade closed manually
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I am seeing bullish divergence now on daily charts and we are close to it on many 30m timeframes. I am taking profits today with a huge gain. IWM could move up on Friday or gap lower. Right now I am leaning towards a buyer's bounce because there has been heavy directional selling. Price is close to 100ma on weekly.
Watching RTY futures this evening, and this bearish trade probably works out very well tomorrow and into Friday I believe. Excellent call on this swing. And thanks again for posting—it helped me get back in at 202 :P
SquishTrade
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Thanks for posting @OptionsRising. I had forgotten about IWM the last few days. Last week I closed out short position (call credit spread) into the upper 190s. In my view it's one of the best shorting opportunities. Here is a chart of the IWM vs. SPY tradingview.com/chart/rh6yeHnv/ IWM vs SPY continues getting rejected at the 21 EMA (daily). I do think IWM may bounce this week and perhaps next, like a mean reversion. Best of luck