Poor IWM. It’s been struggling to keep up with its two big ETF cousins, SPY and QQQ in the last month. SPY and QQQ share a majority of their component symbols, and the big companies that are most heavily weighted in them, like MSFT, AMZN, GOOGL and AAPL (a MAGA conspiracy?) have been rallying together. That’s left the little cap IWM in the relative dust, with “relative” being the operative word. IWM is still up over 13% on the year, which is what’s keeping its IV rank at a low 26%. That points to debit spreads for speculative trades. If you think that IWM might continue to be weak and are bearish on it, the long put vertical that’s short the 151 put and long the 153 put in the May expiration with 51 DTE is a bearish strategy that has a 62% prob of making 50% of its max profit before expiry and that generates $.18 of positive daily theta.
Opened 19/03/27 for $.84 debit
Closed 19/04/01 for $.64 credit