The Daily and Weekly Charts

An update on IWM Call Spread. IWM reaches the frontline of defense threatening a breakthrough the all time high it reached in the beginning of March 2021 where it topped out at 234.53. Now what? Will it retread or advance?

Yesterday we continued with our Call Spread Credit Spread Project. We had two bull candles and hence I tried to sell the spread at the height of the day. Success! I do not expect the IWM to make higher highs at this moment BUT, BUT, BUT either way we calculated our our Strike Price and the probabilities. Thats it.

IWM and its new All Time Heigh at 235.53. Will it retreat or will it advance? IWM is range trading February 2021.

We made a Mistake.

Our calculations regarding entry level told us to enter the Spread at 248/253. But instead I entered the trade at 242/247. This is just above 1st Standard Deviation. Not good. Now I am trying to sell the wrong position for any bread crump I can get so that I can at least pay for commission and fees involved.

Remember, we have the gain of the underlaying derived from the historical prices and there is the MEAN UP TREND, the WORST CASE SCENARIO UP TREND, and the ATR number. All three averaged creates the Bingo number. The trade follows the Bingo number IF, IF, IF it is equal or greater than 2 StaDev.

I already set up the new sale for 248/253 and I hope this will go all through today. You have to correct your mistakes as soon as possible. Do not let them run out of control. We all did this, We all do it but it is a weakness in trading. Open orders, one Buy to Close and another one, Sell to Open.