Mike Khouw Sees Unusual Options Activity In Allergan plc

27% profits every 20 days?

This is what Nic Chahine averages with his options 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 about unusually high options activity in Allergan plc (NYSE: AGN).He noticed that a trader paid $10.2 million in premium for 10,000 contracts of the August 210/230 call spread. The trader bought the call spread for $10.2 and the trade breaks even at $220.20 or 2.92 percent higher from the closing price on Monday. If the stock moves to $230 at the August expiration, the trade is going to make a maximal profit of $9.80. Khouw added that Allergan plc is going to announce earnings on Tuesday and the stock moves around 7 percent on earnings, which is equal to the amount that the market is currently implying.

27% profits every 20 days?

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