Alan Knuckman's iShares Russell 2000 Index (ETF) Trade

Speaking on Bloomberg Markets, Alan Knuckman of Bulls-Eye Option suggested that traders should consider a bullish options trade in iShares Russell 2000 Index (ETF) IWM.

IShares Russell 2000 Index has underperformed the S&P 500, and Knuckman thinks that it could catch up. To get a long exposure, he wants to buy the October 130 call for $9. The call is $6.47 in the money and it breaks even at $139 or 1.85 percent above the current market price. Knuckman believes that iShares Russell 2000 Index could move to $145, which would bring him a gain of 75 percent on the trade.