My Trade: New IWM Put Sold With Management Plan

As part of my options trading journal, I entered a new trade on IWM today. This continues my approach of selling slightly out-of-the-money puts on strong ETFs while actively managing risk and learning trade mechanics.

Trade Details

• Underlying: IWM (iShares Russell 2000 ETF)

• Strategy: Short Put

• Strike: 198

• Expiration: July 18, 2025 (44 days out)

• Entry Price (Credit): $2.74

• Delta: ~25

• Break-even Price: 195.26

• Max Profit (Per Contract): $274

• Buying Power Used: ~$2,032.25

My Trade Plan

• Profit Target: 50% of max credit (~$137 profit). This keeps me disciplined in locking profits rather than being greedy.

• Active Management: I will continue monitoring the price action on IWM. If the trade moves against me significantly, I’ll assess for an early exit or adjustment.

• Adjustment Plan:

  • If the strike is breached or challenged, I plan to roll out the trade — extending duration, adjusting strikes, or rolling down to reduce delta and maintain premium collection.

  • My goal is not to fight the market but to manage defensively and keep time decay working in my favor.

Why I Chose This Setup

• Delta 25 Zone: This gives a nice balance of premium collected with a high probability of success.

• Plenty of Time: 44 days gives flexibility while keeping theta decay meaningful.

• IWM Technicals: IWM remains in a strong range, and selling downside puts gives me cushion to collect premium without needing bullish price action.