I sold the IWM call at $0.06 and bought it back at $0.03, locking in a $0.03 profit per contract.
Why This Strategy Worked:
1. I Captured Quick Profits 💰
• Selling calls at a premium and buying them back cheaper is an effective way to generate steady income.
• A 50% profit (0.03 / 0.06) in a short time is a solid risk-reward trade.
2. I Expect IWM to Rise Higher 📈
• If IWM keeps rallying, the call premium would have risen, potentially causing bigger losses if left open.
• Closing the position early locks in profit and removes risk.
3. Buying Pressure & Bullish Sentiment 🔥
• Since I anticipate strong inflows into small caps (IWM) in the coming weeks, selling covered calls could cap my gains.
• By closing the call early, I leave room for further upside gains on IWM.
Alternative Approach for Extra Profit:
If I’m still bullish on IWM, I could:
• Sell a put option to collect premium while betting on a rise.
• Buy a call spread to profit from the upside with limited risk.
• Use stop-limit orders to maximize gains if IWM surges.
This was a good, tactical adjustment, keeping me positioned for the rally. Want to analyze IWM’s technicals to confirm the momentum?$IWM 20250328 224.0 CALL$ $IWM 20250328 224.0 CALL$
| Side | Price | Filled | Realized P&L |
|---|---|---|
| Buy Close | 0.03 1Lot(s) | +28.96% Closed |
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