IWM @ $248.90 UNDERWATER $16.10 (6.1% below SS)
20 contracts (2,000 sh) | SS: $265.00 | IV: MEDIUM
LC: $190 exp 2028-01-21 (entry $92.459/sh)
SP: $250 exp 2028-01-21 (entry $21.583/sh)
HP: $220 exp 2026-06-30 (entry $6.418/sh)
Current CCs
| Contract | Expiry | Type | Status | Sigma | Survival | Entry |
|---|
| 20x $265 call | 2 Apr 2026 (9d) | CONS | ROLL | σ 1.18 | 88% | entry $1.55 |
>>> ROLL ALERT: 20 contract(s) need immediate action
20x $265 call (2 Apr 2026, 9d DTE, sigma 1.18)
Buyback: ~$0.46 ask
| Target | Bid | Net/sh | Total (20 ct) | New sigma | Type |
|---|
| $249 17 Apr 2026 | $7.98 | +$7.52 | +$15,040 | 0.00 | OUT+DOWN |
| $249 2 Apr 2026 | $5.37 | +$4.91 | +$9,820 | 0.01 | DOWN |
| $265 17 Apr 2026 | $1.69 | +$1.23 | +$2,460 | 0.72 | OUT |
| $266 17 Apr 2026 | $1.46 | +$1.00 | +$2,000 | 0.77 | OUT+UP |
Economics
| Max Loss | $214,589 | (ND $77.29 + SW $30) x 2000 |
| Normal income ref | $13,412/mo | 75% ann ROI on ML |
| Hedge rolling cost | $3,245/mo | |
| FIGHT CC | $251 call, $3.70 bid | exp 31 Mar 2026 (7d DTE) |
| Conservative CC | $265 call, $0.58 bid | exp 6 Apr 2026 (13d DTE) |
FIGHT Allocation
| Contracts | Income/mo | Net/mo | CC→SS Gap |
|---|
| Cover hedge | 1/20 | $4,129 | $884 | $1,030 |
| Match normal | 10/20 | $17,196 | $13,951 | $10,300 |
| Full FIGHT | 20/20 | $31,714 | $28,469 | $20,600 |
FIGHT Options (exp 31 Mar 2026, 7d DTE)
| OTM% | Strike | Bid | $/ct/mo | Hedge Ct | Match Ct | Gap/ct | Gap@Hedge | Gap@Match | Net@Match |
|---|
| 1% | $251 | $3.70 | $1,586 | 1/20 | 10/20 | $1,030 | $1,030 | $10,300 | $13,951 |
| 2% | $254 | $2.40 | $1,029 | 1/20 | 16/20 | $860 | $860 | $13,760 | $13,748 |
| 3% | $256 | $1.71 | $733 | 1/20 | 20/20 | $729 | $729 | $14,580 | $11,412 |
| 5% | $261 | $0.61 | $261 | 5/20 | 20/20 | $339 | $1,695 | $6,780 | $1,984 |
* = cannot fully match normal income with 20 contracts
TRADE RECOMMENDATION (match normal income)
Sell 10: IWM $251 call (exp 31 Mar 2026, 7d DTE, ~$3.70 bid)
Keep 10: $265 CC (~$0.58 bid)
Net income: $13,951/mo (target $13,412)
Gap CC→SS: $1,030/ct ($10,300 across 10 contracts)
Legend
| Max Loss (ML) | Worst-case loss: (Net Debit + Spread Width) x shares. ND = LC entry - SP entry + HP entry. SW = SP strike - HP strike. |
| Normal income ref | Target monthly income: IV-based annual ROI on ML / 12 (LOW 45%, MED 75%, HIGH 95%) |
| Hedge rolling cost | Monthly cost to maintain the HP (protective put): (30 / HP_DTE) x HP_ask x shares |
| FIGHT CC | Short-dated, near-ATM covered call for income recovery |
| Conservative CC | Standard CC at safe strike (far OTM when underwater) |
| Cover hedge | Min FIGHT contracts to pay for the hedge rolling cost |
| Match normal | FIGHT contracts needed to reach normal income target |
| Gap/ct | Net gap risk per contract: (SS - strike - bid) x 100. Max loss if stock rallies to SS, net of premium received. |
| Gap@Hedge | Total gap risk at cover-hedge contract count |
| Gap@Match | Total gap risk at match-normal contract count |
| Net@Match | Monthly income after hedge cost at match-normal level |