Quant Signals V3 IWM– Bearish Setup

Instrument: IWM
Signal Type: Weekly
Expiry: 2025-12-05 (7 days)
Direction: BUY PUTS
Confidence: 60% (Low Conviction)
Strike Focus: $245.00
Entry Range: $0.88
Target 1: $1.70 (≈93% gain)
Stop Loss: $0.43 (≈50% risk)
Weekly Momentum: NEUTRAL (-0.01% 1W)
Flow Intel: Neutral | PCR 1.13
Katy AI Prediction: Bearish, target $242.20 (-2.5% from current)
Risk Level: HIGH – Weekly expiry with gamma risk; Friday expiration requires small position sizing

Analysis Summary:

Katy AI shows a downward trajectory from $248.40 → $238.30 over the next 7 days.

Technicals: Price near weekly high; MACD bearish divergence; volume 4.5× average indicating distribution.

News: Mixed; small caps and pharma outperform, IWM relative weakness.

Options Flow: Slight bearish bias (PCR 1.13), institutional hedging observed.

Positioning Recommendation:

Entry Price: $0.88

Target 1: $1.70

Stop Loss: $0.43

Position Size: Keep small due to high gamma risk