Trade Alert – (IWM) November 16, 2012

As a potentially profitable opportunity presents itself, John will send you an alert with specific trade information as to what should be bought, when to buy it, and at what price.

Trade Alert – (IWM)

Buy the iShares Russell 2000 Index ETF (IWM) December, 2012 $78 puts at $3.10 or best

Opening Trade

11-16-2012

expiration date: 12-21-2012

Portfolio weighting: increase 1.8% to 3.8%

Number of Contracts = 8 contracts

Buy 8 December, 2012 (IWM) $78 Puts at……………$3.10

total cost: $2,480

I’m going to a fully delta neutral position on my (IWM) January $76-80 bull call spread by buying more December $78 puts against them. It’s not a great entry point, but it’s the only way to stop the bleeding. The market is trading like grim death here, with a total inability to rally. This hedge should eliminate any further erosion in the value of the long (IWM) long position for the time being.