IWM Long Put — 2026-08-21

IWM (iShares Russell 2000 Index Fund) shows bearish unusual options activity: $1712K of buyer-initiated unusual put flow (100% put-dominant) detected across near-term expirations, with a peak vol/OI ratio of 1.8x on the 295 put. IV rank is 25 (low) — cheap enough to buy the naked long put outright for full convexity. Buy the $296 put expiring 2026-08-21 (30 DTE) at mid $6.75 per share ($676 per contract). Breakeven at $289.25; net delta 0.53.

Underlying: IWM @ ~$296.54 | 2026-08-21 (30 DTE) | Net debit (entry): ~$676 per contract. Use limit orders at the mid or slightly worse.

MAX LOSS: Limited to the premium paid ($676 per contract). This is a defined-risk debit trade. | IV RISK: IV rank is 25 — reasonable for buying options. | TIMING: 30 DTE — unusual flow is a near-term signal; act promptly or the setup may stale. Close or take profit before expiration week to avoid gamma risk. | SECTOR: IWM is in ETF — avoid concentration with other open ETF positions. | EXECUTION: Use limit orders at mid or slightly worse. Verify the bid-ask before sending; do not chase with market orders. | EVENTS: Check for upcoming earnings, FDA decisions, or macro prints within the trade window that could cause outsized gap risk.