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 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.
PepsiCo: Small Move Expected Post Earnings
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'
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.
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