I purchased the IWM March 17th $170P today in my personal trading account and am placing the same trade in the Blue Line Premium Option Portfolio. Here is the reasoning and expectations. IWM has already fallen 20%+ three times since the onset of its bear market in November, 2021. The first time was from Nov 2021-Jan 2022, then once again between April-June 2022, and then a third time between Aug-Oct 2022. Insofar as the steepest part of the bear market is due dead ahead, it's time to bet on another 20-25% decline into March expiration, 68 calendar days ahead. That presents an opportunity for a 10X increase in the value of out of the money puts, in particular the Mar 17th $170P currently trading at about $360 each. Should IWM trade down 25% (to $134) they should be worth $3,600 intrinsic value. If the price drop happens quick enough, I will look to roll-over into second 10X opportunity along the way. Before the end of the next leg down, IWM could pull a TSLA and be testing support around $100.
