Web Extra: Alcoa Earnings and Viewer Questions Provide a Teaching Moment

We often discuss unusual options flows covering as many as ten different securities in less than 10 minutes. Today we’re only talking about one security. That company is Alcoa, a large international aluminum producer.

The company reported after the close. We take this as an opportunity to provide a teaching moment. What might the trader who placed a large bet have considered when formulating the idea? What factors might you consider? What might one do differently?

 



 

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