We were tempted to buy calls on the small cap Russell 2000 ETF (symbol: IWM) tonight. The three-day dip stalled as traders bought the decline near the IWM's prior highs from October. If you are looking for an alternative bullish candidate then consider buying a bounce in the IWM. The $116 area would be a good short-term target.
NEW DIRECTIONAL CALL PLAYS
Universal Health Services - UHS - close: 83.09 change: +0.81
Stop Loss: 80.75
Current Option Gain/Loss: Unopened
Time Frame: 4 to 5 weeks
New Positions: Yes, see below
Why We Like It:
UHS is in the healthcare sector. The company operates a number of hospitals, surgery centers, and health centers. The stock has been showing relative strength. The U.S. market has been sinking the last three days. UHS has been consolidating sideways until today where shares outperformed the market with a +0.9% gain. This is a new all-time, closing high for UHS stock.
Tonight we are suggesting a trigger to buy calls at $83.60. If triggered our target is $88.50.
Trigger @ 83.60
- Suggested Positions -
buy the 2014 Jan $85 call (UHS1418a85) current ask $1.75
Entry on December -- at $---.--
Average Daily Volume = 912 thousand
Listed on December 03, 2013