Pete Najarian Sees Unusual Options Activity In American Eagle Outfitters


27% profit every 20 days?

This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.


Pete Najarian said on CNBC's "Fast Money Halftime Report" that the options market is telling him that American Eagle Outfitters (NYSE:AEO) is ready to break out on the upside.

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He explained that options traders bought around 10,000 contracts of the May 20 calls for around a dollar. The trade breaks even at $21 or around 15 percent above the current market price. Najarian added that he likes the company's balance sheet and buybacks.


27% profit every 20 days?

This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.


Posted In: CNBCOptionsMarketsMediaFast Money Halftime ReportPete Najarian