Small caps had a good week last week as the Russell 2000 (RUT) rose about 2.5% which places it up 1.67% for the year.  The large cap focused Russell 1000 (RUI) was up just under 1% and is not up 4.96% for 2017.

RUT RUI 424

VIX has worked higher as geopolitical risks have risen in the past couple of weeks and the Russell 2000 Volatility Index (RVX) has done the same.   The result is a lower RVX to VIX risk premium, with this measure actually closing at a 2017 low on Friday.  

RVX VIX 424

On Friday there was one trader who seems to expect RUT to remain at or above current levels.  Mid-day with RUT around 1375 someone sold 400 RUT May 5th 1375 Puts for 15.75 and then purchased the RUT May 5th 1370 Puts for 14.05 resulting in a net credit of 1.70.  Between the time the trade was executed and the end of the trading day RUT moved up over 4 points so this trade is off to a good start.  

RUT PO 424