NEW DIRECTIONAL CALL PLAYS

Russell 2000 ETF - IWM - close: 111.35 change: -0.16

Stop Loss: 109.25
Target(s): TBD
Current Option Gain/Loss: Unopened
Time Frame: exit PRIOR to January option expiration
New Positions: Yes, see below

Company Description

Why We Like It:
The IWM is the iShares Russell 2000 ETF that tracks the Russell 2000 small cap index. The IWM appears to be bouncing from its trend of higher lows and technical support near its 50-dma. If the Federal Reserve does not announce a taper to their QE program tomorrow afternoon it could spark the next move higher in the market. The IWM is a great way to play that move.

Today's high was $111.54. We are suggesting a trigger to buy calls at $111.65. More conservative investors may want to wait until after the FOMC meeting statement is released (about 2:00 p.m. Eastern) and then evaluate an entry point.

We're not setting a target price yet. It will probably be in the $115-120 zone.

Trigger @ 111.65

- Suggested Positions -

Buy the 2014 Jan $112 call (IWM1418a112) current ask $1.67

Annotated Chart:

Entry on December -- at $---.--
Average Daily Volume = 35 million
Listed on December 17, 2013