šWhy I Sold a Put option Instead of wait to Buy IWM at $208
On June 23, 2025, I was closely monitoring the iShares Russell 2000 ETF (IWM). The technical setup was attractiveāprice action had shown steady upward momentum, closing strong at $211.77 with a daily gain of +1.22%, riding well above its 5-day and 10-day EMAs. I initially planned to buy in at $208, expecting a short-term breakout continuation. But instead, I made a more calculated moveāI sold a cash-secured put at a strike price of $209, collecting $1.12 in premium.
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š¼ The Reasoning Behind the Put Sale
IWM had shown clear resilience, staying above its 20-day and 30-day exponential moving averages. But at $208, I felt there was still short-term volatility due to macroeconomic uncertainty and overbought KDJ signals (K: 38.65, D: 43.78, J: 28.40), which hinted at potential sideways movement. So rather than chasing the price, I positioned myself with a $209 strike put, just slightly below the closing price. This way:
ā¢ I get paid upfront ($1.12 premium) for waiting.
ā¢ If assigned, my effective cost basis would be $207.88 ($209 - $1.12), which is near EMA20 support ($209.01) and below key resistance.
ā¢ If not assigned, I keep the full premium and still have capital ready.
Itās a win-win moveāeither I enter IWM at a discount or collect passive income while staying in control.
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š§ Why This Strategy Makes Sense
Selling puts on a strong uptrend like IWM offers a layer of protection while still capturing opportunity. This is not a gambleāitās a strategic way to reduce entry cost and hedge emotional buying. While others might fear a short pullback, I welcome it. IWM is a reliable ETF that tracks small-cap growth, and I want it in my portfolioābut only at my price and on my terms.
This single put earned me $112 in 8 days, which easily covers my monthly phone bill, and leaves me with either a position in IWM or cash in hand.
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š Conclusion: Let the Market Pay Me to Wait
IWM may continue higher, or it may pull back. Either way, Iām ahead. This is the power of optionsāturning patience into profit. Whether I get assigned or not, the market paid me to stay disciplined. And for me, thatās how wealth is builtāone smart contract at a time
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- Kristina_Ā·2025-06-26Love this kind of calculated moveāletting the market come to you instead of chasing. Selling puts on strong setups like IWM just makes sense.š1Report
- AL_IshanĀ·2025-06-26Bro you just got paid to not buy the dip š Thatās next-level options game. Smart play on IWM!1Report
- ATAT10Ā·2025-06-26Great analysis on IWM! Wasn't paying attention to this ETF until now. š1Report