IWM Bear Put Spread — 2026-08-21

IWM (iShares Russell 2000 Index Fund) shows bearish unusual options activity: $2017K of buyer-initiated unusual put flow (100% put-dominant) detected across near-term expirations, with a peak vol/OI ratio of 1.0x on the 290 put. IV rank is 31 (moderate) — a bear put spread (293/292) trims theta/vega bleed versus a naked long. Buy the $293 / sell the $292 put bear put spread expiring 2026-08-21 (24 DTE) for a net debit of $0.39 ($39 per spread). Breakeven at $292.61; net delta 0.03.

Underlying: IWM @ ~$292.91 | 2026-08-21 (24 DTE) | Net debit (entry): ~$39 per spread. Use limit orders at the mid or slightly worse.

MAX LOSS: Limited to the net debit ($39 per spread). Max gain is capped at the strike width minus the debit — a defined-risk, defined-reward trade. | IV RISK: IV rank is 31 — reasonable for a debit spread. | TIMING: 24 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 on the spread (don't leg in). 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.