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.
Dan Nathan spoke on CNBC's "Options Action" about an options strategy in Walt Disney Co (NYSE:DIS) ahead of earnings.
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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The company is going to report earnings Tuesday and Nathan wants to sell the May 105 call for 80 cents and buy the September 100 call for $5.80. The trading structure would cost him $5 and it breaks even at $105 or 3.81 percent above the current stock price.
The options market is implying a move of 3.5 percent on the earnings event and the stock has moved 2.5 percent on average on the event.