Trader bets nearly $20M on big move in small-cap Russell 2000 ETF options by December

A trader placed a nearly $20 million bet on the Russell 2000 ETF (IWM), buying both puts and calls that profit from a significant price move either up or down by mid-December. This options strategy, called a strangle, suggests expectations of increased volatility in small-cap stocks, which have outperformed tech-heavy Nasdaq this year. The move reflects growing investor interest in small caps amid signs of exhaustion in mega-cap tech stocks. Small caps have shown resilience despite rising Treasury yields, with regional banks also gaining notably this year.