I was waiting for my two candles since Monday but the underlaying took a small retraction. Today on Thursday we saw a bullish engulfing. It was rejected at the 229-230 Resistance level. An area with over 100,000 Call and 50,000 Put options. If this level is broken the MM will have to hand out more money to the players. And this, they do not like. The Market Maker Sweet Spot is between $228 and $222. This is were I expect the price to settle for the end of this week. This is the zone where the MM make the most profit.

What do I expect tomorrow OCT 30th?

A DOJI or Shooting Star with a break into the $230-231 level and then a closing below 228!

We have an average trading volume of 22.9 of 25.5 million shares today, with an IV Ranking of around 20% ATM. This is average and normal for the IWM. Range Trending seems to continue.

We can see the MM Sweet Spot and the current price. My estimate where it all will end this week. It should close below $228.

Here we see the estimated losses of the Market Makers at different closing prices. The green area is where they want to be to make the most money this week. Fine with me. The lower the better.

• Remember:
• We make money when the stock moves up MODERATELY
• We make money when the stock moves sideways
• We make money when the stock moves down

This is a nice little programming unit. You just have to fill in the closing price and Dollar amounts for the Market Maker will show up automatically.

My 238/248 Call Spread with 29 DTE might run into trouble.

With current price of 228.11 at closing we want to take a look at the Excel work sheet. It shows the target price of the underlaying in 4 weeks calculated by the

• Average Median Up Trend at $238.56
• Average Worst Case Up Trend at $248.10, and by the
• 8 Week ATR at $236.23
• Which brings us to the EXPECTED TARGET PRICE, THE BINGO NUMBER, at $241

Since the Strike is set at 238 for the short leg of the pair we might get taken out IF, IF, IF the next 4 weeks will move slightly above average.

This trade was still taken with the old concept. NOW

• I shortened the wings of the Call Spread from 10 to 5 Dollar
• Therefore I doubled the contracts
• And I reduced the 45 DTE to 30 DTE, which also reduced the credit from 10% ROC to 5% ROC

These spreads expire 14 days earlier and since my calculations are based on 30 days I deem them more accurate. Therefore I lose 50% of the ROC. But that is fine. Compound 5% every month and you know what it make in 12 months.

What will happen tomorrow?

Tomorrow at opening I want to see IWM to move above $230. I will sell at this level and expect the price to drop into the $228 zone for profit taking by the MM.

I will try to sell at highest point. The more it moves up the better. Selling at a higher price in an more volatile environment is more money.