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JJ Kinahan Options Activity Alert On Alcoa, Pepsi, Walgreens

JJ Kinahan Options Activity Alert On Alcoa, Pepsi, Walgreens

Speaking to Benzinga, TD Ameritrade Holding Corp. (NYSE: AMTD) Chief Strategist Joe "JJ" Kinahan talked about options activity in several stocks ahead of their earnings report.

Alcoa: Call Buyers Active On Tuesday, Put Buyers Active On Wednesday

Kinahan said that the market is pricing in a 5.5 percent move in shares of Alcoa Inc (NYSE: AA) after its earnings report on Wednesday.

Kinahan noted that call buyers were active on the $11.50 chain on Tuesday, but put buyers were active on Wednesday with puts trading at five times its usual volume.

"The one thing to look for in Alcoa's earnings is that their CEO on the last earnings call talked about a 6.5 percent worldwide demand increase for aluminum, so I think that you will really see people really pressing on that," he said.

Related Link: Dan Nathan Sees Unusual Options Activity In Alcoa

PepsiCo: Small Move Expected Post Earnings

Kinahan said that the market is pricing in a very small move of 1.6 percent in shares of PepsiCo, Inc. (NYSE: PEP) after it reports its earnings on Thursday before market open. He also pointed out that there was higher than usual volume in the July $98 calls on Wednesday and these options expire this week, making it "one of the more interesting trades today."

Kinahan pointed out that PepsiCo derives the majority of its profits from snacks, and not beverages, a fact that some investors may "lose sight of."

Walgreens: ‘Not A Big Options Trader'

Moving on to Walgreens Boots Alliance Inc (NASDAQ: WBA), Kinahan said that it is "not a big options trader" despite the fact it is a large company.

Kinahan went on to say that the market is pricing about a 3 percent move following its earnings release on Thursday before market open. He added that there is nothing "crazy" or "interesting" in the options market as the total volume was less than 2,000 contracts.

"Good company, good products, but not a ton of options trading," he said.

Image Credit: Public Domain

Posted-In: Aluminum JJ Kinahan Joe KinahanAnalyst Color Exclusives Interview


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