Market Overview

Dan Deming's iShares Russell 2000 Index (ETF) Trade

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Speaking on Bloomberg Markets, Dan Deming of KKM Financial suggested that the viewers should consider a bearish options strategy in iShares Russell 2000 Index (ETF) (NYSE: IWM).

He explained that the stock gained 30 percent from the lows in February and he believes it's getting a little bit ahead of itself because it hasn't reached its June 2015 highs, while the other major indices have reached their June highs.

Deming believes that there is going to be a sentiment change in the market and he thinks a decline in iShares Russell 2000 Index (ETF) could be bigger than in the other indices. To make a bearish trade, he wants to buy the October 120/115 put spread for $1.28.

The trade breaks even at $118.72 and it can maximally make $3.72 if the stock drops to $115 or lower.

 

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Posted-In: Bloomberg Markets Dan Deming KKM FinancialOptions Markets Media

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