syahrir maulana
Russell 2000 implied volatility has fallen to the lowest level in more than two months. The road is a bit less rocky for the embattled small-cap space lately, but the Russell 2000 ETF (IWM) remains well
RYLD: Small Cap Implied Volatility Dips, Not Ideal For Selling Calls
Summary
- Russell 2000 implied volatility hits a two-month low, which means less in the way of option premium to be collected from selling upside calls.
- Small caps continue to struggle relative to large caps, but IWM's absolute chart shows signs of life, suggesting that owning IWM over RYLD today could make more sense.
- The Global X Russell 2000 Covered Call ETF has underperformed and may not be the best investment option right now given macro conditions, though seasonality is strong ahead.
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