February 1, 2023

Cabot Options Institute Quant Trader: Alert (IWM)

iShares Russell 2000 ETF (IWM)

Well, I think we all knew the time would eventually come. We are going to close out of our February IWM iron condor as it has reached our stop-loss. This marks our first loss since August 11 and only our second since initiating the Quant Trader service back in early June. If you wish to hold, please be aware of the risks. Remember, trading is a marathon, not a sprint.

I am going to continue to hold on to our SPY bear call spread, but that might not be for long if SPY doesn’t pull back over the short term. Also, I will be adding several new positions to the mix tomorrow.

The Trade

Simultaneously:

Buy to Close IWM February 17, 2023, 195 call strike
Sell to Close IWM February 17, 2023, 200 call strike
Buy to Close IWM February 17, 2023, 154 put strike
Sell to Close IWM February 17, 2023, 149 put strike … for a total of $2.00. (As always, the price of the spread can vary from the time of the alert, so please adjust accordingly.)

If you have any questions, please do not hesitate to email me at andy@cabotwealth.com.

Andy Crowder

Andy Crowder is a professional options trader, researcher and Senior Analyst at Cabot. Formerly with Oppenheimer & Co. in New York, Andy has leveraged his investment experience to develop his statistically based options trading strategy which applies probability theory to option valuations in order to execute risk-controlled trades. This proprietary strategy has been refined through two decades of research and real-world experience and has been featured in the Wall Street Journal, Seeking Alpha, and numerous other financial publications. Andy has helped thousands of option traders learn and implement his meticulous rules-driven options trading strategies through highly attended conferences, one-on-one coaching, webinars, and his work as a financial columnist. He currently resides in Bolton Valley, Vermont and when he’s not trading, teaching and writing about options, he enjoys spending time with his wife and two daughters, backcountry skiing, biking, running and enjoying all things outdoors.