Mike Khouw Sees Unusual Options Activity In Alcoa - Alcoa (NYSE:AA)

20-Year Pro Trader Reveals His "MoneyLine"

Ditch your indicators and use the "MoneyLine". A simple line tells you when to buy and sell without the guesswork. It’s a line on a chart that’s helped Nic Chahine win 83% of his options buys. Here's how he does it.

Mike Khouw analyzed a trading activity in Alcoa Inc (NYSE: AA) on CNBC's Options Action on Tuesday. He said that daily options volume was two times higher than the average daily options volume.The options market is implying a 4 percent move on earnings day, which is higher than the average move on earnings of 3 percent. There were more bullish than bearish trades and one bullish trade caught Kouw's attention. A trader bought 4,400 contracts of the April weekly 13.50-strike calls for $0.30. The break-even for the trade is at $13.80 or approximately 3 percent higher at the expiration this week.Alcoa will report earnings on Wednesday.

20-Year Pro Trader Reveals His "MoneyLine"

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