With a low Implied volatility rank of 15 in the real estate ETF I decided to make a directional bet with a debit put spread. This is a low probability trade, but will add some negative deltas to my portfolio. It does have a decent R:R of almost 2:1 so at least I will get paid when I am right and my risk is defined. Bought a Vertical debit put spread on IYR for $1.01 per contract.
I did 5 contracts so the trade would look like this: (+5) 79 Put (-5) 76 Put Max win $995 Max loss -$505 Probability of profit is 45%
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