Mike Khouw Sees Unusual Bearish Options Activity In Abercrombie & Fitch - Abercrombie & Fitch (NYSE:ANF)

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.

Mike Khouw spoke on CNBC's Options Action

ENTER TO WIN $500 IN STOCK OR CRYPTO

Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!

about trading activity in Abercrombie & Fitch Co. (NYSE: ANF) on Thursday. He said that three times average daily options volume was traded ahead of earnings report, which is scheduled for next week.The average move on earnings report over the last eight quarters was 7 percent and this time options market is anticipating a move of 13.5 percent. The most active options on Thursday were the March 18 puts. Over 15,000 contracts were bought at $0.20. The breakeven for this trade is at $17.80, which means that

Abercrombie & Fitch has to drop 26 percent for the trade to be profitable at expiration.