Whether via stop-outs or time erosion, the Premium Options Portfolio is no longer positioned adequately enough for a major sell-off. Accordingly, we want to be aggressive in getting short via index puts on the breaking of the first key level in the weakest of our indices. IWM Daily Imagine the look of this chart with IWM falling back into the downward sloping trend channel and below the Average True Range level of 164.00. It would be a persuasive indication that last week's rally has failed and new lows, below 161.67 are on the way. Below 164, the next target is 146-128. By going out to January we are allowing for price to hang around the low 170's for a few more days or even weeks before the sell-off and still generate 10X returns. Most Attractive IWM Jan 19th Puts A drop down to the Key Level trigger should also assume a price rise in the designated put price as it will then be at-the-money. Aggressive traders can go a few strikes lower for additional leverage, up to and including the $160 strike.
