Small Caps Options Traders Should See This Chart

Core Viewpoint - The iShares Russell 2000 ETF (IWM) has experienced a decline of nearly 4% over the last 30 days but is maintaining key chart support, indicating resilience compared to other ETFs amid a broader market selloff [1][4]. Performance Summary - IWM is currently trading at $251.88, down 0.6% at the last check, and has lost 3.8% in the past 30 days, remaining close to its year-to-date breakeven level [2]. - In comparison, other sectors such as semiconductors and the Financial Select Sector SPDR Fund (XLF) have performed worse during the same period [2]. Options Market Sentiment - There is significant pessimism surrounding IWM, as indicated by a higher-than-usual buying of puts relative to calls. The 10-day put/call volume ratio stands at 1.72, ranking in the 80th percentile of its annual range [3]. Chart Support Analysis - IWM has chart support at its 126-day moving average, approximately at the $250 level. If this support holds and small caps rebound, there could be an unwinding of bearish bets, potentially pushing IWM back to its all-time high of $271.59 reached on January 22 [4].