Stocks finally halted their selloff at the midpoint of last week, with the major indices all up at least 2% on the day. On that day, the iShares Russell 2000 ETF (IWM) was up over 3%, marking an outperformance from small cap stocks. A trader appears to have used the opportunity to place a 10,000-lot covered call trade in IWM. The position collects a small amount of premium, but also allows for a fair amount of upside in the index over the next few weeks.
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This post was originally published on InvestorsAlley
