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Quant Trader
Expert-Level Options for Sophisticated Traders

January 6, 2023

Cabot Options Institute Quant Trader – Alert (IWM)

iShares Russell 2000 ETF (IWM)

I’ve decided to take our IWM January 17, 2023 iron condor off the table for an 19% return. Yes, the probabilities remain high on the trade, but with only $0.06 to gain over the next 14 days, the risk/reward just doesn’t seem to make sense.

If you wish to hold on to the trade for additional returns please be aware of the risk.

The Trade

Simultaneously:

  • Buy to Close IWM January 20, 2023, 198 call strike
  • Sell to Close IWM January 20, 2023, 202 call strike
  • Buy to Close IWM January 20, 2023, 160 put strike
  • Sell to Close IWM January 20, 2023, 156 put strike…for a total of $0.06. (As always, the price of the spread can vary from the time of the alert, so please adjust accordingly if you wish exit the position.)
Andy Crowder is a professional options trader, researcher and Chief Analyst of Cabot Options Institute. 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.