In early May, we recommended investors sell an appropriate amount of in the money call spreads (16-June-2017, 144/138) on IWM to hedge some of the downside risks in their portfolios when the ETF was trading at $139.21. (Investors need to size the hedge given the size of their portfolio and how much risk they want to hedge.) That hedge expired on Friday and those that participated in that trade made a nominal $32 per call spread. Readers of TOE know that we have been looking for a correction before we see the next leg higher in the popular averages. Since that note on 11-May-2017, the market has continued to essentially trade sideways, frustrating both the bulls and the bears. IWM for example, closed at $140.19 last Friday showing that the market might bounce around a little bit in low volatility trading, but it cannot seem to make any move in one direction or another.
