27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.
On CNBC's "Options Action", Mike Khouw spoke about a high options volume in Micron Technology, Inc. (NASDAQ:MU). He said that bullish bets outnumbered bearish bets by around 2 to 1 Thursday.
During the trading session, he noticed a large sale of the April 45 puts in the name. Around 10,000 contracts were sold for an average price of $4.35. The trade breaks even at $40.65 or 8.49 percent below the current market price. If the stock stays above $40.65 at the April expiration, the trade is going to make money. If it stays above $45 at the April expiration, traders are going to collect the whole premium. Below $45, they are going to have to buy the stock and below $40.65, the trade starts to lose money.
27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.
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