🎯 Profit Taken: Call Broken Wing Butterfly – IWM Expired OTM
✅ $513 profit (100%)
The June 24 setup on the iShares Russell 2000 ETF (IWM) delivered a full premium capture, with every option in the Call Broken Wing Butterfly expiring out of the money.
The position was not built on a market collapse.
It was built on a slowdown.
After a strong advance from the April lows, IWM had reached the upper end of its recent range with price extended above the main moving averages and short-term momentum already stretched.
The broader trend remained intact, but the move was no longer early.
That distinction mattered.
The trade did not require IWM to reverse sharply. It only needed the ETF to stop advancing efficiently, spend time consolidating, or pull back from its recent highs.
Over the following weeks, that is exactly what developed.
Price struggled to produce sustained upside follow-through above the $300 area. The daily chart shifted from persistent expansion into a slower, more rotational structure.
Momentum weakened without turning into a disorderly selloff.
RSI cooled as the upside extension faded, while the daily MACD histogram moved below zero and confirmed a loss of short-term momentum.
The turning point was not a dramatic decline.
It was the absence of another sustained move higher.
As IWM remained below the call structure, time decay continued working in favor of the position. The 314 and 315 strikes were never placed under meaningful pressure during the final stage of the trade.
By expiration on July 24, IWM remained comfortably below the entire risk zone.
All three call legs expired out of the money.
Full premium captured.
Trade Recap
Structure: Call Broken Wing Butterfly
Entry Date: June 24, 2026
Expiration: July 24, 2026
Contracts: 4
Long Call: 314C
Short Calls: 315C
Upper Long Call: 330C
Credit Received: $518
Net P/L After Broker Fees: +$513
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👉 View in Trade Log
Post-mortem
The structure stayed fully out of the money through expiration, allowing time decay to complete the trade.
→ The risk zone remained untouched
→ All call legs expired worthless
→ The full premium was captured
The result: $513 net profit after broker commissions and a 100% return.
Disclaimer
All content is for informational purposes only and does not constitute financial advice.Any trades or strategies should be tested in a simulated environment before use.Trading involves risk, and all decisions are the sole responsibility of the reader.