IWO Forecast


Bullish Case: Positive institutional sentiment and historical upward trajectory suggest a potential continued uptrend. Moderate implied volatility benefits premium sellers.


Bearish Case: Flat term structure and high short-term implied volatility indicate near-term uncertainty, risking potential downward movements if broader market sentiment wanes.


Potential Outcomes: Flat market with moderate volatility: 40%. Gradual uptrend: 50%, driven by strong historical returns and institutional inflows. Sharp downturn: 10%, if market sentiment deteriorates.


Trading Oracle: Sell August 2024 OTM put spreads, such as IWO 08/16/2024 270/260 P. This captures high implied volatility with limited risk, aligning with a neutral-to-bullish outlook. High institutional inflows support potential upside.


July 16, 2024


iShares Russell 2000 Growth Forecast

IWO      iShares Russell 2000 Growth











Correlated Assets

Assets that tend to move strongly with IWO



ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (0.85)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (0.44)


VFC Forecast + Options Trading Strategies   VFC  VF (-0.52)


LI Forecast + Options Trading Strategies   LI  Li Auto (-0.53)



Uncorrelated Assets

Assets with little price relationship to IWO



XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (0.44)


VFC Forecast + Options Trading Strategies   VFC  VF (-0.52)


LI Forecast + Options Trading Strategies   LI  Li Auto (-0.53)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (0.85)



Anticorrelated Assets

Assets that tend to move strongly against IWO



ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (0.85)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (0.44)


VFC Forecast + Options Trading Strategies   VFC  VF (-0.52)


LI Forecast + Options Trading Strategies   LI  Li Auto (-0.53)





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