My Bullish Position in Russell 2000 for year 2025
Вставка
- Опубліковано 5 вер 2024
- In this video, we explore my bullish position in the Russell 2000 for the year 2025!
Join Methodical Trades inner-circle on Telegram: https: //t.me/+axS_jszn2RcxNzM1
Twitter: / methodictrades
Email: sanjeev.kaushik@methodicaltrades.com
Website: www.methodicaltrades.com
You may also like:
Complete Guide on Covered Call Writing: • The only Covered Call ...
Best Suited Option Strategy for Bear Markets with Bullish View: • Best Options Trading S...
How I made $2 Million in a Year from Trading & Investing: • Revealing My $1.8 Mill...
Complete Guide - Long Duration Iron Fly: • Free Course on Longer ...
Complete Guide on Covered Call: • The only Covered Call ...
An Evergreen Options Strategy: • Best Options Trading S...
Complete Guide on Options Greeks: • The Only Greeks Video ...
The Only Option Adjustment you need to Know: • The Right Time to Sell...
Blue Skies,
Sanjeev Kaushik
Disclaimer: No buy or sell recommendation is provided in this video and they are only for educational purposes.
#InvestmentInsights #Russell2000 #StockMarket #Bullish2025 #InvestmentStrategy #MarketTrends #FinancialJourney #StockPredictions #MarketAnalysis #FinancialEducation #2025Outlook #DiversifyPortfolio #MarketWatch #EconomicForecast #RiskManagement #TradingStrategies #AssetAllocation #WealthBuilding #vix #creditspreads #debitspreads #optionstrading #optionsguide #options #optionstrategy #optionselling #optionbuying #historicvolatility #impliedvolatility #impliedvolatilitytrading #impliedvolatilityoptions #impliedvolatilityformula
Russel 200 are not small but MEDIUM caps
The video is on Russell 2000 not 200. Russell 200 measures the performance of the 200 largest companies in the Russell 1000 Index.
Hey Sanjeev;
Given the jump of last days, and potential catch up, what would you do hypothetically in my case, I'll be investing aggressively or "high risk" , what % would you allocate to russell 2000 index vs something like SCHG... I have to figure this one out
Ideally, no strategy should take more than 15% of total investment capital. For option buying, it should be capped at even lower %
Why not buy TNA ? If you got cash then this is leveraged 3x Russell 2000 index and you can sit on it for 3-4 years if market remains in a bad shapes . Eventually Russell has to go up and you can make significant money without taking much risk ( as long as you sit on it )
Why would I put so much money out upfront? I'd prefer huge credit to enter into this long-term trade so I can earn some extremely high interest on that capital by either investing in government securities or just letting it sit there as IBKR also pays decent rates on cash holdings over 100k.
I can even trade with that cash which is what I am doing with a portion of it. Lots of possibilities open up when you receive huge credit..
Another question (for learning): if you are such bullish (you hv solid reasoning I agree) in the index, why don't you take a bullish spread around that 1700 support level? Let's say long on 2000 short on 2700 (or something similar). So 2350 is your breakeven but RR should be more than Iron butterfly.
Not able to understand it -- hence asking 🙏
That would require huge capital outlay. Iron BF gives me credit and that's why this is my preferred route.
Interesting concept - so you are technically getting interest free credit to be used on other trades.
Would you use a Stop loss for this trade? If yes, where would you set it?
Yeah..no SL but I do try to earn enough from the received credit to earn max loss worth of income in 2 yrs...
Hi.Excellent But it has a catch How much margin requires to open a single position in Interactive brokers?
Margin changes depending upon the MTM P&L but initial margin tends to be much lesser than credit received, sometimes less than 50% of the credit received. Of course, one must have adequate liquidity to stay in the trade as the size is quite large for a small account.
Thank You @@TheSanjeevKaushik
This logic is applicable for any markets smallcaps. Right? Bcos may be this is the case for Indian mid and smallcap as broder mkt is languishing but no stop rally for Indian mid and smallcap.
Also how are you confident that by 2025 sometimes the Fed will cut rate? Their commentaries are very dovish always.
Indian mid & small caps have run up a lot already in last few months and who knows how much steam is still left. No signs of fatigue shown yet. I am fairly confident for Fed to cut rates in 2024 itself..
Good video. Well studied. Not to mention the smallcap pe is significantly discounted also compared to the mag7
True, their underperformance won't last too long.
Not convinced. Better trades out there with low risk.
Thanks for your feedback
If you are so certain on IWM between now and 2025, why don't you do covered calls on 2025 IWM leaps, i.e. calendar spreads on call leaps (buy Dec. 2025 calls, sell calls against it every month)? Easier to manage and cheaper. Unless you expect a massive spike in IWM, I don't see the advantage of long iron butterfly. Do you expect a massive spike up in IWM?
I do a lot of time spreads on stocks with bullish view but it requires lots of capital to do at the scale I like to do. And selling such far OTM calls in near months will barely yield any premium returns - not worth considering brokerage charges. Iron bf gives me huge credit and serves the same purpose. Also, I get to use that credit in other trades for a few months.
Yes, I am bullish on small caps.
Interest rates are not coming down soon. PCE core is still high and not easing. IWM is more sensitive to interest rates and less likely to spike by 2025. It also has a lot of space to fall below current levels. NQ and SPX are mostly driven by a few large mcaps. This state may not change for awhile. And BOJ may shake the bond markets.
@@georgeandroid4284 indeed there are always risks in such long duration trades. As I mentioned in the video, don't have to be married with the trade for that long - I can exit anytime in small profits. Which is what I do very often..