How To Generate Cash Flow From Holding Volatile Small Caps

High Volatility, Small Cap Stocks, Volatility
by Jay Soloff
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Market volatility has been at its highest since February.  Small cap stocks have been particularly volatile lately.  Keep in mind, small caps tend to get sold early when there is a flight to quality.  The popular small cap stock ETF, iShares Russell 2000 ETF (IWM) dropped from a 52-week high near $245 all the way down to $215 in about a month.  Once strategist’s large covered call trade last week suggests that the ETF may stay in that range through February, but also could be set to rebound.

Author: Jay SoloffJay Soloff is the Options Portfolio Manager at Investors Alley. Jay is also the editor for 48-Hour Income, Options Insiders, and co-editor of Weekly Income Accelerator and POWR Income with Tim Plaehn. Prior to joining the online investment world, Jay was a floor trader and market maker on the CBOE, the world's largest options exchange. His experience includes trading a multi-million dollar options portfolio in equities options as well as serving as a consultant to Wall Street options trading groups. Jay also spent time as a senior analyst at a hedge fund of funds, where he analyzed professional options funds as well as traded option strategies for hedging purposes. All told, Jay has 20 years of options trading experience. He received his undergrad degree in Economics at the University of Illinois - Champaign, and his MBA and Master of Science in Information Management from Arizona State University.
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