Options Insight: How to Play the iShares Russell 2000 ETF

The video discusses the shift in market sentiment towards a bullish outlook following the Trump election rally, with major indices like the Russell 2000 and Dow showing significant gains. Despite this, there are concerns about a potential market pullback due to underlying weaknesses in secondary markets and transportation averages. The video also analyzes the Russell 2000, highlighting key support and resistance levels, and presents an options strategy using a put spread to manage risk and protect against potential declines.

What is one reason for the bullish sentiment in the market following the Trump election?

• A decrease in major averages

• A significant rise in the VIX

• A decline in realized volatility

• A shift in market strategists' expectations

Which market area is mentioned as showing weakness and potentially signaling a reversal?

• Financials

• Technology

• Industrials

• Transportation averages

What is the purpose of using a put spread in trading strategies?

• To protect against potential downturns

• To increase market exposure

• To reduce trading fees

• To maximize profits in a bullish market

What level is the IWM expected to reach if it breaks the 135 support level?

• 125

• 130

• 140

• 135

What is the risk-reward ratio mentioned for the March 135-131 put spread?

• 1 to 1

• 3 to 1

• 2 to 1

• 4 to 1