Uncovered Options Trading System
Category: Equity Index Futures / ETF Futures
The ishares Russell 2000 Index Fund Futures have been developed to track the price (performance) of the ishares Russell 2000 Index Fund
(IWM). They were introduced and become available for trading in 2005 year. The IWM Futures are traded on the Chicago Merchandise Exchange (CME).
The ishares Russell 2000 Index Fund Futures belongs to the group of the "ETF" futures from the "Equity Index" futures category.
The value of the one ishares Russell 2000 Index Fund Futures contracts is $200 times the value of the ishares Russell 2000 Index Fund. If for example, the ishares Russell 2000 Index Fund
(IWM) is traded at $80, the value of one future contracts gives to a furfures trader a buying power
that is equivalent to $16,000 (200 times bigger). Furthermore, if the
ishares Russell 2000 Index Fund moves up or drops down for one point, the IWM Futures contract increase or decline in its value by $200. The tick size (minimum price
fluctuation) of the ishares Russell 2000 Index Fund Futures contract is 0.01 which correspond to $2.00.
The ishares Russell 2000 Index Fund Futures are traded under the "IWM" symbol and the regular trading hours for indexs futures are from 5 p.m. EST to 3:15 p.m. EST on the next trading
day. The IWM futures contracts are classified by the month of expiration. The IWM futures expire on the third Friday of March, June, September and December. Based
on the expiration, the year's number and month's letter are added to the futures symbol for its identification.
The IWM futures that expire in March have "H" letter added, June expiration futures have "M" letter added, for September
expiration futures "U" letter is used and those futures that expire in December have "Z" letter added at the end. Furthermore, the ishares Russell 2000 Index Fund Futures that
expire in June 2024 are traded under the "IWM4M" symbol, the September 2024 expiration contracts are traded under the "IWM4U"
symbol, December 2024 expiration IWM Futures have "IWM4Z" symbol and the ones that expire in March 2025 are listed
under the "IWM5H" symbol.
| Ticker Symbol: | IWM |
| Commodity: | ishares Russell 2000 Index Fund (IWM) |
| Available for trading since: | 2005 |
| Expiration Cycle: | Four times a year on third Friday of March, June, September and December. Next four expirations are IWM4M - June 2024 IWM4U - September 2024 IWM4Z - December 2024 IWM5H - March 2025 |
| Contract Size: | $200 x ishares Russell 2000 Index Fund price |
| Minimum Tick Size: | 0.01 = $2.00 |
| Traded on: | Chicago Merchandise Exchange (CME) |
Naked options trading is very risky - many people lose money trading them. It is recommended contacting your broker or investment professional to find out about trading risk and margin requirements before getting involved into trading uncovered options.