iShares Russell 2000 BuyWrite ETF Price & Performance (IWMW)

The iShares Russell 2000 Buywrite ETF (IWMW) is under scrutiny as it tests a critical resistance level of 41.83. Technical analysis suggests potential short opportunities near this level with a downside target of 40.13. Conversely, breaking above 41.83 may signal a buy, targeting 43.81. Traders are advised to monitor closely.1

First Trust has introduced the Small Cap Buy Write Income ETF (FTKI), an actively managed fund employing a buy-write strategy. By selling call options on the Russell 2000 Index, FTKI aims to generate income while limiting upside potential. This ETF may appeal to investors seeking income stability amid small-cap volatility.2

A recent analysis highlights the iShares Russell 2000 ETF (IWM), Invesco QQQ Trust (QQQ), and SPDR S&P 500 ETF Trust (SPY) as top choices for selling covered calls. These ETFs offer high liquidity and premium potential, though their high share prices pose entry barriers. Volatility remains a key driver of returns.3