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Quant Trader
Expert-Level Options for Sophisticated Traders

March 1, 2023

Cabot Options Institute Quant Trader – Alert (IWM)

iShares Russell 2000 ETF (IWM)

Even with a probability of success that sits just over 80%, we still have 16 days until our IWM March 17, 2023, iron condor is due to expire. Sixteen days doesn’t seem like a lot but in this market environment, it only takes a few days for the Russell 2000 to dip below our 180 put strike. As a result, I’m going to take a conservative approach, and take small profits and all risk off the table today. If you choose to hold on to the trade please be aware of the risks.

The Trade

Simultaneously:

  • Buy to Close IWM March 17, 2023, 215 call strike
  • Sell to Close IWM March 17, 2023, 220 call strike
  • Buy to Close IWM March 17, 2023, 180 put strike
  • Sell to Close IWM March 17, 2023, 175 put strike … for a total of $0.51. (As always, the price of the spread can vary from the time of the alert, so please adjust accordingly.)