Mark Sebastian's Russell 2000 Trade

Mark Sebastian of Option Pit spoke on Bloomberg Markets about an options trading idea in the Russell 2000 Index, which has traded sharply higher since the Presidential election.

He thinks it's going to continue to outperform and he wants to buy a call spread in the index. Sebastian wants to buy the January 1,350 call and sell the January 1,400 call for $14. The break even for the trade is at $1,364 and it can maximally make $36.

Traders who don't like to trade futures options can consider opening a similar strategy in iShares Russell 2000 Index (ETF) IWM.