Cabot Options Institute Quant Trader – Alert (IWM)
Russell 2000 ETF (IWM)
With 30 days left until the May 19 expiration cycle ends, we have the ability to lock in roughly 75% of the original premium sold. As a result, I am going to stay mechanical and take my IWM iron condor off the table, lock in profits and look for another iron condor to sell, or possibly sell a bear call spread with the intent of legging into an iron condor.
The Trade
Simultaneously:
- Buy to close IWM May 19, 2023, 191 call strike
- Sell to close IWM May 19, 2023, 196 call strike
- Buy to close IWM May 19, 2023, 147 put strike
- Sell to close IWM May 19, 2023, 142 put strike … for a total of $0.23. (As always, the price of the spread can vary from the time of the alert, so please adjust accordingly if you wish to exit the position.)