Unusual Options Activity In El Pollo LoCo Holdings Inc
CNBC Options Action's Mike Khouw talked on the show about El Pollo LoCo Holdings Inc (NASDAQ: LOCO). This name caught his attention because higher than average daily options volume was traded on Wednesday.
He said that the September at the money straddle in El Pollo LoCo is trading at $5.00, which means that the options traders believe that this stock could move almost 15 percent after the company reports earnings on Thursday.
Khouw also noticed interesting activity in the September 33 put options and traders were paying $1.25 for these. The breakeven for this trade is at $31.75, which means that the owners of these puts are expecting El Pollo LoCo to decline more than 7.68 percent.
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