RUT – Russell 2000 Index Option Open Interest

Rather than look at the SPX we are looking at the RUT for the Russell 2000 Index and where Option Open Interest predicts that market to trade by the end of October. Granted last month the SPX failed to come through in glorious fashion for us – but that the life of a trader right. Some indicators work this month and don’t the next – it is what it is.

Now onto the RUT. Here’s the open interest configuration. Clearly, the highest concentration is centered around 640 with some pretty even distributions around 570 and 750.

On the chart of the RUT that would put us here for a close in October (or close to it). The summary – volatility and a slightly bearish sentiment this month.