IWM Put Credit Spread - Jun 19 Small-Cap Support

IWM offers a cleaner bullish probability setup than a naked short put because risk is defined. The short put is about 8% below the current stock price, giving room for normal volatility while targeting positive theta. Estimated probability profile: roughly 72-76% POP if live short put delta is near 20-25.

Current quote snapshot used for this alert: IWM ~$277.14. This is an educational trade idea, not personalized financial advice.

Underlying: IWM @ ~$277.14 Expiration: Jun 19, 2026 Structure: Sell 255P / Buy 245P Target entry: collect about $2.05 credit per share, or better.

Probability focus: sell downside premium below recent price while defining risk with the long put. Best suited for a neutral-to-bullish tape where small caps avoid a broad risk-off breakdown.

Use limit orders only. Verify live option chain liquidity, bid/ask width, earnings date, and short-strike delta before entering. Skip the setup if the live credit is materially worse than the target or if the short strike is no longer around the intended probability zone.

Take profits at 50% of max profit, near $103 per 1-lot. Defend or exit if the position reaches about 2x credit received, near a $410 loss per 1-lot, or if price closes beyond the short strike with momentum. Avoid holding into expiration week unless actively managing assignment/gamma risk. Re-check earnings and macro-event calendar before entry.