The IWM ETF seeks to track the daily results of the Russell 2000 small cap stocks index. I have traded the IWM ETF since 2001as one of many options trading strategies designed to sell options for income.
Selling Options For Income In The Small Cap Stocks Minefield
Many investors have difficulty selecting individual small cap stocks for trading purposes. Indeed selling options for income through small cap stocks is often a minefield littered with broken and damaged portfolios. Small cap stocks can create small fortunes and just as easily destroy them.
IWM ETF – Russell 2000 Small Cap Stocks
The Russell 2000 Index contains 2000 small to medium size small cap stocks making it far easier to sell options for income while protecting the capital being used. The problem though is the Russell 2000 trades for over $1000 a share making it out of reach for the majority of investors.
The IWM ETF on the other hand trades in the low $100’s range making both the options and shares readily accessible to all investors. It also means that selling options for income in small cap stocks can become highly profitable as the small cap stocks tend to be more volatile. It is this volatility that makes investing in small cap stocks highly profitable and through the IWM ETF there is a much higher degree of safety for capital being used.
52% Return In IWM ETF Options Trading Strategies to March 24
For 2016 the return against capital being used has reached 52% and new trades will be started next week. Here are all the trades done to March 24 2016. All trades have concluded and capital is back reday to be reinvested next week in the final week of March.
FullyInformed Members can review all the trades to March 24 directly through this link or Members can sign in to the full members site here. Non-members can join here or read the benefits of being a member.
Disclaimer: There are risks involved in all investment strategies and investors can and do lose capital. Trade at your own risk. Stocks, options and investing are risky and can result in considerable losses. None of the strategies, stocks or information discussed and presented are financial or trading advice or recommendations. Everything presented and discussed are the author’s own trade ideas and opinions which the author may or may not enter into. The author assumes no liability for topics, ideas, errors, omissions, content and external links and trades done or not done. The author may or may not enter the trades mentioned. Some positions in mentioned stocks may already be held or are being adjusted.
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