Last Friday my previous short call contract on IWM expired. That’s $38.44 in the bank. The market can’t take it back! Of course I am still waiting for the March contract on the short put to expire before I can count that premium as profit.
Instead of opening a one week contract, I decided to sell to open a call contract with expiration in two weeks. With a longer expiration I can lower my risk by raising my strike price to $152 and received a bit more in premium.
I am more conservative on the downside. But I am thinking about closing out the short put early and move it up from $130 strike to $135. I don’t think the market will retest that low unless we are headed into a recession.
Warning! This is not a trade recommendation. If you copy my trades – you will lose money.