We hold some Nov 6 130 puts effectively for free, since subscribers were able to cash out half of the original position for as much as four times what they’d paid. They are a distant longshot at this point, but you never can tell. In any event, they will have a few days to respond to the nuclear shock wave if Joe’ Biden wins. I am still predicting Trump’s re-election, however, and we should be thrilled to see our puts expire worthless if that’s how things play out. There may also be an opportunity to buy IWM ‘mechanically’ on a pullback to the green line (see inset) if it should be hit on Tuesday before election returns start trickling in. Stay tuned to the chat room for further guidance. ______ UPDATE (Nov 14, 11:53 p.m.): Although I was wrong about the election outcome and the powerful rally it catalyzed in this vehicle, it cost us nothing because we had taken a partial profit on half the position, selling it for twice what we’d paid. Some subscribers actually made money being wrong, since it was possible to sell the puts for as much as four times their acquisition cost. Now, a two-day close above p=161.78 would put a 172.17 rally target in play (60-min, A=143.35 on 9.25). _______ UPDATE (Nov 5, 9:21 p.m.): The way buyers ripped through p=161.78 today all but guarantees that IWM wlil achieve the 172.17 target.
IWM – Russell 2000 ETF (Last:164.91)