iShares Russell 2000 ETF (IWM) rebounded from an important support at 108 with Piercing Pattern.

Original Post by Marubozu My Stocks Investing Journey

Trade Setup

• Strategy: Short Term Directional Bullish Trade.
• Target: $113-$114
• Short Put Spread IWM 108/112 Oct 2014 (2 contracts)
• Max gain @ expiration $496
• Max loss @ expiration $309
• B/E @ expiration $109.52
• Reward vs Risk (RoC) = 1.61
• Probability OTM (short leg) = 63.25%
• Profit target = $373 (at $114 200D SMA resistance)
• Exit Conditions:
  • When there is a reversal pattern at the resistance ($114)
  • Break $108 support convincingly.
  • Reach 80% of Max Profit (ie. $396)