CNBC’s Options Action Trade for June 12th, 2017 – Russell 2000 ETF (IWM)
On Friday’s CNBC’s Options Action, the crew analyzed the performance of small cap stocks. The Russell 2000 (IWM) has outperformed the S&P500 over a 30 year period, but has recently underperformed over the last decade. As IWM catches up, it has recently broken out from a consolidation period with a bullish triangle formation. Breaking out above the $140 resistance level sets IWM up for another leg higher, Michael Khouw suggested buying a Sept 143 Call for a $4.00 Debit.
We’ve structured this trade in OptionsPlay so you can analyze and view this trade along with the supporting technical chart at your convenience. You can also view the Options Action’s video by clicking on the following link: CNBC Options Action