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Alan Knuckman's Russell 2000 ETF Trade

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Alan Knuckman of Bulls Eye Option spoke on Bloomberg Markets about a trading idea in iShares Russell 2000 Index (ETF) (NYSE: IWM).

He said the stock is lagging behind the S&P 500 and it has been trading sideways since November. It had a false break out a couple of weeks ago and after a move higher to $141.82, it dropped to $138. Knuckman thinks that the $138 price level is an important support and he believes iShares Russell 2000 Index (ETF) is going to bounce off the support and trade higher.

To make a bullish bet, he wants to buy the July 130 call option for $9.15. The trade breaks even at $139.15 or 0.53 percent above the current stock price.

Posted-In: Alan Knuckman Bloomberg Markets Bulls Eye OptionOptions Markets Media ETFs

 

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