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 Bloomberg Markets, Scott Bauer spoke about an options strategy in Lululemon Athletica inc. (NASDAQ:LULU) ahead of the December 6 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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He decided to use the iron condor strategy as he was hoping that the stock is going to stay in the range. Bauer sold the December 117/115 put spread and the December 144/146 call spread for a total credit of $0.90. If the stock stays between $117 and $144 at the December 7 expiration, he is going to collect $0.90, which is the maximal profit for the trade. He starts to lose money below $116.10 and above $144.90 and he can maximally lose $1.10.
Editor's note: Lululemon beat Q3 top- and bottom-line estimates. Shares were up marginally in Friday's pre-market session.