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.
Benzinga takes a look back at a notable market-related moment that happened on this date.
What Happened
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In 1990, the parent company of investment bank and junk bond firm Drexel Burnham Lambert filed for Chapter 11 bankruptcy protection.
Where Was The Market
The Dow Jones Industrial Average closed at $2,624.10, while the S&P 500 closed at $331.02.
What Else Was Going On In The World
On the same day, the U.S., U.K. and France sanctioned Germany’s intent to reunify.
Drexel Burnham Lambert's Collapse Begins
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After years of regulatory pressure for securities fraud and mounting concerns in the junk-bond business, Drexel Burnham Lambert’s holding company defaulted on $100 million in loans, prompting a sell-off in the subsidiary’s securities and the distancing of other Wall Street firms.
The company had supported many of the largest corporate mergers in the 1980s and pioneered the financing of high-risk ventures with high-yield junk bonds.
At the time, then- U.S. Rep. Chuck Schumer called its closure a “sad day for New Yorkers and a sad day for the American financial system.”
“It represents a significant blow to New York City's economy and marks the end of an era in American finance,” Schumer told the New York Times.
At its peak, Drexel Burnham Lambert was Wall Street’s most profitable firm with $545 million in earnings on $4 billion-plus revenue. A small remnant of the company continues on under the name New Street Capital.
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This Day In Market History, Feb. 9: 1960s Bull Market Ends
Photo via Pixabay.
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.