Futures and options trading: what do you do when a trending market falls back into support? Chris Vecchio walks through a short put spread on the E-mini Russell 2000, RTYU6, which has bounced off the zone between its one month and 50 day moving averages since early April. Selling the 2875/2850 put spread below support brings in a credit with defined risk. The best part: the Russell does not even need to rally. It just needs to hold above support and not break down.
Presented with @cmegroup
š tastylive:
tastylive.com
š° Get Tom's pre-market analysis every morning:
tastylive.com/newsletters
š FREE Options Strategy Guide:
tinyurl.com/bp9ms763
š± Follow tastylive on X:
x.com/tastyliveshow
Chapters
00:00 What to do when a trend falls back to support
00:10 The Russell 2000 trend since early April
00:30 The trade: sell the 2875/2850 put spread below support
00:46 Why the Russell does not even need to rally
01:08 How a short put spread works: cred...