Today we saw a trader buy over 10,000 AA August 44.50 Calls for $.35. I did buy these Calls today and I already sold these Calls are made over $5500 Profits as these Calls went up 100% gains in the course for just a couple of hours.
This is the power of Insider Buyer in the options market. This gives the trader the right but not obligation to buy almost 1,000,000 shares of AA between now and August expiration and for this right they paid $35 per 1 lot or $350,000 total. This is a big Insider Buyer of AA Calls. I am NOT LONG these Calls anymore but I Short Credit Put Spreads. This has been a name we have seen a lot of UOA in and this has been an Activist long in the past and might be again in the future.