Small Cap Stocks

Trade of the Week: Small Caps

Trade of the Week: Small Caps

The most popular way for investors to trade small caps is through the iShares Russell 2000 ETF (IWM).  IWM averages nearly 30 million shares traded per day, and over 750,000 options. Last week, a large fund or trader placed a block of nearly 50,000 puts in IWM that expire in October. These far-out-of-the-money puts could […]

Trade of the Week: IWM

Trade of the Week: IWM

Small cap stocks have been on a tear over the last month, with iShares Russell 2000 ETF (IWM) up nearly 11% in that span. IWM is a heavily traded index ETF that tracks small cap stocks, which sometimes represents the value trade. At least one big trader is using covered calls to express a very […]

Trade of the Week: Small Caps

Trade of the Week: Small Caps

Options trading continues to be very active in this market, even though daily volatility of stocks moves has dropped in recent weeks. Index and ETF options remain popular methods for trading market direction. They are also very useful instruments for hedging long stock portfolios. For instance, iShares Russell 2000 ETF (IWM) can be used as […]