Sunday, January 2, 2011

IWM & TWM - Cashing in at both windows

Here's a very nice setup. The IWM (ETF) is so far above the moving average, it looks to me like it's due for a nice pullback. Plus the low of the high has been taken out.
IWM


TWM
The TWM (ETF ultra short) is so far below, it looks like it's bottomed out and is building a base preparing for a pop to the up side.
I will buy Feb puts on the IWM and calls on the TWM. Hope it helps
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2 comments:

  1. PaulJanuary 3, 2011 at 9:56 PM

    Hi Jim,

    Why buy puts on IWM and calls on TWM, they move together in opposite way. You double your risk, don't you ?

    Thanks.
    Regards.

    ReplyDelete
  2. Jim StevensonJanuary 4, 2011 at 6:46 AM

    Both trades are very low risk due to the setup. You double your profits with minimal risk. hope it helps

    ReplyDelete

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