For the past month the Russell 2000 has been crushing the S&P 500. The Russell for March is up 2.08% and the S&P 500 is down -2.58%. More to point, the Russell is now oversold on the QPI Oversold Indicator at 29.75.
So I recommended in my options service the following trade:
We are going to play the Russell 2000 via $IWM. We will buy calls on the iShares Russell 2000 ($IWM) using the April $153 Call that is trading at $3.30. $IWM is at $153.22.
There is no limit to this trade and the breakeven is $156.30 due for expiration April 20th.
We have it hit oversold a 29.75. More on this over the weekend. Good luck.
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