Utilizing short puts in SPDR S&P 500 ETF compared to iShares Russell 2000 and iShares Core S&P Small-Cap ETF

The article discusses utilizing selling short puts to enter the SPDR S&P 500 ETF at a lower price. It also highlights the differences between the iShares Russell 2000 ETF (IWM) and the iShares Core S&P Small-Cap ETF (IJR), with IJR having a better quality of stocks. Options volume is higher for IWM, but a put play is possible for IJR.

IWM tracks the Russell 2000 Index, while IJR follows the S&P SmallCap 600. IWM has 2,104 holdings, while IJR has 629. The Russell 2000 has no profit requirement for inclusion compared to the S&P SmallCap 600, which requires four consecutive quarters of profits.

Despite higher options volume for IWM, the article focuses on an options play for IJR. The Feb. 20/2026 $85 put strike price offers a better entry point if shares need to be purchased. IJR is seen as a better bet on long-term success due to the quality of its stocks.

Read more at Yahoo Finance: Is the iShares Russell 2000 ETF the Best Way to Play Small Caps?