27% profits every 20 days?
This is what Nic Chahine averages with his options 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 "Options Action," Guy Adami shared his bullish view on Lululemon Athletica Inc (NASDAQ:LULU). He likes the stock because of growing menswear, China growth and improving margins and he expects it to trade higher going into earnings.
Mike Khouw thinks the stock has a high valuation and its options prices are pretty high. Instead of buying calls, he wants to use a call calendar options strategy.
See Also: Analyst: Lululemon's Luxury-Like Positioning Can Stretch Company To A $40B Market Cap
He wants to sell the December $250 call and buy the January $250 call for a total debit of $1.85. If the stock trades below $250 at the December expiration, the December call would expire worthless and the breakeven for the January call would be at $251.85 or around 8.5% above the current stock price. The maximal risk for the trade is $1.85.
The company reports third-quarters earnings on Wednesday.
27% profits every 20 days?
This is what Nic Chahine averages with his options 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.
ENTER TO WIN $500 IN STOCK OR CRYPTO
Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!