iShares Russell 2000 ETF (IWM)
With only 16 days left and quite a few important data points being released over the next week or so, I’ve decided to take off our iron condor in IWM for a small profit. I will be reestablishing a new iron condor most likely tomorrow or Monday for the October expiration cycle. If you choose to hold on, please be aware of the risks.
At the moment the risk is to the downside, but the 173 put strike still has an 80%+ probability of success with a 5.5% margin of error. But, as we all know, a 5.5% move in IWM can occur in just a handful of days and given where we’ve been with this iron condor I’m more than happy to take a small profit and focus on the next opportunity.
The Trade
Simultaneously:
- Buy to close IWM September 23, 2022, 215 call strike
Sell to close IWM September 23, 2022, 220 call strike - Buy to close IWM September 23, 2022, 173 put strike
Sell to close IWM September 23, 2022, 168 put strike
…for a total of $0.57. (As always, the price of the spread can vary from the time of the alert, so please adjust accordingly.)