Scott Nations Recommeds An Options Strategy In Alcoa (AA)

On CNBC's Options Action, Scott Nations recommended an options strategy that should help investors to profit if Alcoa Inc. AA soars and even if it sinks a little bit. Scott Nations thinks that Alcoa (AA) has the most expensive options among the stocks in the Dow Jones Index. Therefore he believes that it would be wise to sell put options in Alcoa (AA). He wants to sell the January 16 puts for $0.45. If Alcoa (AA) trades higher Scott Nations would keep the premium that he collected, and if it trades below $15.55 he would have to buy it and pay $16 for it. Alcoa Inc. (AA) spiked 4.56% today, and closed at $16.52.