IWM Sees $129K Bet on June Call Spread With 84% Gain as Bullish Technicals and Skew Signal Upside
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Large Call Spread Nets 84% Return as IWM Climbs 2.65 Points
On June 23, 2025, a significant call spread trade lit up the IWM (iShares Russell 2000 ETF) options tape. The spread—2,202 contracts of the June 24, 2025, 208-212 call—was bought for a volume-weighted average price (VWAP) of $1.17. With IWM’s price rising by $2.65 from $207.37 at the time of trade to $210.02, the value of the spread climbed to $2.16, handing buyers an average gain of $0.99 or 84.4% within about an hour.
Given the spread was executed above the market midpoint and that the VWAP price ($1.17) exceeded the prevailing bid, data points to a customer buying the spread and dealers selling it. To maximize their potential $311K return, buyers need IWM above $212 at expiration. With an upfront investment just over $129K, this was a decisive position as expiry approached.
| Expiration | Strike Prices | Contracts | Trade Price (VWAP) | Stock Reference |
|---|---|---|---|---|
| 24-Jun-25 | 208-212 Call Spread | 2,202 | 1.17 | 207.37 |
| Stock Gain | Spread Value | Spread Gain | Max Profit | Investment |
| +2.65 | 2.16 | 0.99 (84.4%) | $311K | $129K |
See the full multi-leg trade analysis here.
Bullish Moving Average Crossovers Contrast With Market Underperformance
Despite this aggressive options play, IWM’s performance relative to SPY remains mixed. Over the past year, IWM has returned +6.3%, trailing the SPY’s +11.5%. Shorter timeframes paint a similar picture: over three months, IWM is up just +2.7% compared to SPY’s +6.8%. Today, IWM was up +0.4%, lagging SPY’s +0.8% daily jump.
Yet the technical setup has a distinctly bullish tilt. The 20-day moving average stands 3.7% above the 50-day (a bullish crossover signal), and IWM is trading 4.3% above its 50-day average. Price has rebounded 22.3% from its 52-week low and now sits just 0.6% above the 20-day moving average. However, it’s still -2.2% below the longer-term 250-day moving average and -14.3% below the 52-week high, reflecting recent volatility.
| Moving Avg. | Price Difference | Signal |
|---|---|---|
| 20-Day vs. 50-Day | +3.7% | Bullish Crossover |
| Stock vs. 50-Day | +4.3% | Bullish |
| Stock vs. 250-Day | -2.2% | Below Long-Term Avg. |
While the momentum is positive in the near term, IWM has consistently lagged the market leader SPY in all periods from two weeks to five years, hinting that buyers may be looking for a catch-up move or short-term rebound rather than sustained outperformance.
Options Skew Ranks at 72%—Implied Volatility Suggests Bullish Sentiment
On the options side, the proprietary 30-day skew indicator for IWM ranks at 72%, well into the bullish territory on its historical scale. This elevated skew often reflects growing demand for upside exposure (call options) versus downside (puts), aligning with both the direction and timing of the major call spread.
Here’s how IWM has stacked up versus SPY over time:
| Duration | IWM Return | Low | High | SPY Return |
|---|---|---|---|---|
| Today | +0.4% | 206.81 | 210.71 | +0.8% |
| 2 Week | -0.6% | 206.81 | 215.93 | +0.3% |
| 1 Month | +0.7% | 199.65 | 215.93 | +1.3% |
| 3 Month | +2.7% | 171.73 | 215.93 | +6.8% |
| 6 Month | -4.9% | 171.73 | 230.70 | +1.9% |
| 1 Year | +6.3% | 171.73 | 244.98 | +11.5% |
| YTD | -4.5% | 171.73 | 230.70 | +2.8% |
| 3 Year | +32.0% | 161.67 | 244.98 | +69.3% |
| 5 Year | +57.5% | 136.29 | 244.98 | +104.4% |
Takeaway: Short-Term Bullish Hints—But Broader Outperformance Unproven
The outsized call spread win points to bullish sentiment in IWM’s options and short-term technical momentum—despite its persistent underperformance against SPY. While a single trade isn’t a market verdict, the combination of positive momentum crossovers and high skew suggest that some traders expect more near-term upside, especially if IWM can break resistance near $212.
Curious about similar trades or want to screen for other multi-leg opportunities? Check out the Market Chameleon multi-leg trade screener to explore the latest call spreads and complex options activity.
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