Stocks had a tough week and the Russell 2000 (RUT) was down 1.4% on the week and took the small cap benchmark from positive to negative territory for 2016. Large cap stocks held up a bit better with the Russell 1000 (RUI) losing 1.26% and the large cap benchmark remains positive on the year by just over 1%.


Even though RUT underperformed a bit, the CBOE Russell 2000 Volatility Index (RVX) premium to VIX dropped a bit and both volatility indexes climbed last week.  The RVX / VIX premium remains close to the average for 2016 after last week's action.


With about an hour left in the day and the Russell 2000 was at 1127 a seller of the RUT May 20th 1150 Calls at 8.40 who also purchased the RUT May 20th 1050 Puts at 2.90. They took in a net credit of 5.50 and a trade that can benefit if RUT sells off over the next three weeks.