Yesterday I took out what was pretty close to a full size position for option positions in IWM calls because I refuse to close my longer term trend position, SRTY (3x short IWM) as it is aligned with the larger play/probabilities. The calls are aligned with the shorter play/probability and not only hedge SRTY, but should end up at a significant gain as well.
Thus far we have not seen the head fake move as IWM support is becoming very pronounced, meaning a head fake move is more probable as more stops pile up below support, still looking for a move under $113.75, but there has been enough intraday improvement that I will add 25% to the position opened yesterday, If we get the head fake move, I'll add another 25%.
Here's what's prompting me to add right now. These will still be August (standard ) $114 calls.
1 min leading at the lows intraday as they look to have clearly been accumulated.
2 min leading at the same spot.
And even 5 min leading at the same area in addition to the already large divergence in place.
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