iShares Russell 2000 ETF (IWM): Rebound from Support

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

IWM Oct5-2014

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)

IWM Short Put Spread Oct5-2014

 

 

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