IWM 0DTE Options Trade Plan 2025-03-17

IWM 0DTE Trade Plan for 2025-03-17

Technical Analysis Synthesis

5-Minute Chart: Bullish Momentum: Price ($204.37) above all EMAs (10/50/200) with rising 10-period EMA (203.03). Overbought RSI: 79.7 (bearish divergence risk), but price holding near upper Bollinger Band (203.55). Key Resistance: 205.3 (intraday high). Daily Chart: Oversold RSI: 35.47, suggesting potential reversal. Bearish Structure: Price below all key EMAs (10-day: 204.53, 50-day: 217.20). Critical Support: 202.53 (now acting as resistance-turned-support).

Market Sentiment Integration

VIX: 21.77 (falling from 5-day avg 25.09), signaling reduced fear. Max Pain: $202.00 (-1.16% below current price), creating gravitational pull downward. Options Data: Heavy put OI at $202.00 ($0.27 premium), but calls at $205/$206 show weak liquidity.

Directional Determination

Neutral/Unclear

Conflicting Signals: Short-term bullish momentum (5-minute) vs. bearish max pain and daily chart structure. Falling VIX supports upside, but overbought 5-minute RSI and max pain suggest reversal risk.

Trade Recommendation