Mike Khouw Sees Unusual Options Activity In Freeport-McMoRan


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.


On CNBC's "Options Action," Mike Khouw said Freeport-McMoRan Inc (NYSE:FCX) traded over two times the average daily options volume Wednesday and calls outpaced puts by over 6 to 1.

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The most active options were the September $17 calls. About 26,000 of those trade for just over 30 cents, which was considerably more than the open interest. The buyers are betting that the stock is going to trade above $17.30 at the September expiration.That would be an increase in price of 3% or more by the end of the week, said Khouw.


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: OptionsMarketsMediaCNBCMike KhouwOptions Action