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IWO (Ishares Russell 2000 Growth ETF) holds 1200+ different smallcap growth companies. Nearly all of these companies have either sky high or negative P/E hence IWO's P/E is -1300!
Since these companies are not profitable they rely on borrowed money & cash reserves to cover costs; making them very vulnerable to rate hikes by the fed & economic downturns/uncertainty.
IWO was able to balloon off of JPow's free money which means IWO has extremely far to fall now that the market is back on hard mode.
During the March 2020 panic IWO fell from a high of 226 to a low of 129! Indicating investors view IWO as a risky ETF. Since reaching its ATH of 339 during Feb 2021 IWO has fallen today to 260 (its new 52 week low)!
Open interest is starting to reflect concerns over IWO with a 2:1 ratio of Puts:Calls for Jan-May 2022. Interestingly, someone bought 2000 $235 puts on IWO expiring Jan 2023 while only 34 calls Jan 2023 have been purchased.
Morningstar also rated IWO 2/5 stars in 2020 & 2021 if you care about that sort of thing. https://research2.fidelity.com/fidelity/research/reports/getReport.asp?docKey=1515-USA_IWO
The IWM ETF which contains the entire Russell 2000 also has a lot of open interest in puts.
This is not financial advice! I'm currently holding approx. $14k in IWO puts expiring May-Dec and another $6k in IWM puts expiring June-Dec.
TL;DR IWO (& IWM) puts expiring March 2022-Jan 2023 b/c smallcaps r vulnerable to Fed rising rates & any sort of economic downturn; and smallcap growth stocks r extra vulnerable. Strong potential for a 200-1,000% return on these puts.
Michael Burry also bought *$42 Million* worth of IWO puts a few months ago: https://acquirersmultiple.com/2021/05/michael-burrys-top-10-holdings-q1-2021/