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Small-cap exchange-traded fund (ETF) iShares Russell 2000 ETF (IWM) is higher today
The small-cap exchange-traded fund (ETF) iShares Russell 2000 ETF (IWM) is up 1.6% to trade at $220.43 today, likely taking cues from the flat producer price index (PPI) that is calming investors worried about interest rate cuts.
Despite sitting out on a September rally, support is in place at the 40-day moving average. Keep an eye on the +10% year-to-date breakeven level, with IWM sitting up 9.8% in 2024, at last check. Longer term, a 28.3% year-over-year gain paints a technical picture of a solid uptrend and higher highs.
Options traders prefer puts, but that’s not the whole picture. On the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), traders have bought to open 577,430 puts in the past two weeks, compared to 430,630 calls. While there’s a put skew, the resultant 10-day put/call volume ratio ranks in middling 39th percentile of its annual range, indicating the rate of put buying has tapered off.
A further unwinding of these bearish bets could provide fuel for IWM’s next rally. Premium buyers are in luck, as options are attractively priced right now. The ETF’s Schaeffer’s Volatility Index (SVI) of 18% ranks in the 9th percentile of the past 12 months.
Want more small-cap coverage? Sign up for Schaeffer’s Chart of the Weekand look out for a deeper dive into IWM and short interest this Sunday.