On July 13th https://www.theoptionplayer.com/ executed a Russell 2000 Index ETF (NYSE: IWM) August 17th expiration (35-day) option trade. August expiration option contracts expire today and we plan on letting all the call options expire worthless with the maximum profit. Confirmation information is displayed in the tables below. Login with a Premium Subscription to view data/images
The chart below confirms the Russell 2000 Index ETF remains below our $173 sold call. The difference between funds received and paid out is an approx. 18% profit.
The Russell 2000 Index ETF (NYSE: IWM) is currently trading below our sold call. If the IWM ETF remains below $171 we plan on allowing all the contracts to expire worthless.
• However, if the price moves higher, we will initiate an order to close out the position (buy back all the sold call option contracts).
• Most brokers will let customers initiate some type of contingency order that will automatically execute if an ETF reaches a specified price.
• One alternative is to just play it safe and close out the trade at the current price.
Whatever you decide DO NOT let the ETF end the day above the sold call at the close of trading today; otherwise you will be automatically assigned by the broker over the weekend.
The information presented here is for educational and informational purposes only, and this document is not to be construed as an offer to sell, or the solicitation of an offer to buy, securities. The analysis provided is based on both technical and fundamental research and is provided "as is" without warranty of any kind, either expressed or implied. Although the information contained is derived from sources which are believed to be reliable, they cannot be guaranteed. Some investments are not suitable for all investors, and there can be no assurance that any investment strategy will be successful.