Dan Nathan Sees Unusal Options Activity In Alcoa Inc - 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.

Dan Nathan spoke on CNBC's Options Action about increased options activity in Alcoa Inc (NYSE: AA). The call options volume was 6 times higher than the average call options volume and it was also 6 times higher than the put options volume. The most active options in the name on Tuesday were the September 11 call options, with an average price of $0.53. The break even for this trade is at $11.53 or approximately 4.5 percent higher. Nathan believes that traders who want to play for a bounce in the near term in Alcoa Inc should use this strategy and define their risk.

20-Year Pro Trader Reveals His "MoneyLine"

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!