Symbols traded today: IWM (10DTE)

I explored BMY, MCD and DUK as potential bear plays and couldn’t get any to work, based on either the Elliott wave status or the inability to get a reasonable return for the risk. I finally settled for one of my regulars…

IWM short Bear Call Vertical Spread

I’ve entered a position on IWM, 10 days to expiration, based on Elliott Wave analysis that shows it entering a downtrending 5th wave.

LOT:

3

ENTRY DATE:

11/10/2023

Entry and Exit

	CREDIT (ENTRY)
Options premium	$ 1.10
	ENTRY
Stock price	$ 169.21
Implied Volatility Rate	24.6
Days to expiration	10

The structure of the position

STRUCTURE	STRIKE	ODDS EXPIRE OTM	DELTA
Calls
Long	176.00	90.0%	10
Break-even	172.06	76.0%	24
Short	171.00	62.0%	38

Risk and Reward

Per contract:
Reward	110.00
Risk	390.00
R/R Ratio (n:1)	3.5

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By Tim Bovee, Portland, Oregon, November 10, 2023

Disclaimer

Tim Bovee, Private Trader tracks the analysis and trades of a private trader for his own accounts. Nothing in this blog constitutes a recommendation to buy or sell stocks, options or any other financial instrument. The only purpose of this blog is to provide education and entertainment.

No trader is ever 100 percent successful in his or her trades. Trading in the stock and option markets is risky and uncertain. Each trader must make trading decisions for his or her own account, and take responsibility for the consequences.

License

All content on Tim Bovee, Private Trader by Timothy K. Bovee is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

Based on a work at www.timbovee.com.