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 "Trading Nation", Todd Gordon of TradingAnalysis.com suggested that investors should consider an options strategy in Costco Wholesale Corporation (NASDAQ:COST). He said he thinks the stock is going to return to its highs after the recent pullback.
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The implied volatility in the name is in the overbought status, which means that puts and calls are expensive. The company is going to report earnings on Oct. 3 and Gordon wants to use options to trade the event. He wants to sell the October $290/$285 put spread for a credit of $1.98. If the stock closes above $290 at the Oct. 4 expiration, Gordon is going to collect the premium. If it trades lower, he is going to lose money below $288.02. He can maximally lose $3.02 if the stock drops to $285 or lower.
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.