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.
Yesterday saw the major U.S. stock indices reach session lows after reports said President Trump and Xi Jinping may put off signing a trade deal until December. Then, this morning, stock futures jumped higher after the U.S. and China agreed to roll back tariffs in phases if a deal is reached.
By this point, we’re no strangers to the push and pull that U.S./China trade headlines have on markets, but this most recent example shows how quickly markets can react on virtually no news. Despite the back-and-forth headlines, however, investors' "fear" remained low: the CBOE Market Volatility Index (VIX) closed around 12.60 yesterday. And over a 5-day period, the highest the “fear gauge” reached was 13.80, well below its current 200-day moving average of 15.40.
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What does it mean when stocks swing without a push higher in volatility? Well, for starters, that there are many more factors in play. Tied in with more-of-the-same U.S./China news is a swinging oil market, increasing concerns in global economic growth, and an earnings season that’s winding down. However, there are still some earnings names worth watching on the horizon today.
This morning, we see reports from Teva Pharmaceuticals and Keurig Dr. Pepper; and later today, results from The Walt Disney Co (NYSE:DIS), The Trade Desk Inc (NASDAQ:TTD), Booking Holdings Inc (NASDAQ:BKNG), and Dropbox Inc (NASDAQ:DBX).
Information from TDA is not intended to be investment advice or construed as a recommendation or endorsement of any particular investment or investment strategy, and is for illustrative purposes only. Be sure to understand all risks involved with each strategy, including commission costs, before attempting to place any trade.
Image by Markus Spiske from 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.