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.
As of Wednesday, July 13, 2011, Gold traded to a new historical high at $1.578.50 / ounce. The up-trend line (denoted in blue) has been intact and defined the explosive upside move in Gold since October 2008, at which time the market had just constructed a bottom at the $700.00 region.
In addition, the 200- Day Moving Average (red) Line has been positively sloped since March 2009 – which coincided with the U.S. Equity markets posting its multi- year low.
Overall, this has been one of the most dynamic text- book examples of a solid trend in recent history. Even some of the price corrections in the last 2+ years (when the price of Gold traded lower, either on profit taking or speculators taking an outright short position) were minor, and consistently held support at both the up-trend line and Moving Average Line simultaneously (see chart).
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!
The fact that there is such a uniformed bullish consensus in Gold amongst most investors, makes me skittishly bearish at this time. However, the proof is in the facts, and since the Technical outlook remains positive at this juncture, I would recommend selling Gold only if a downside violation of the long term up- trend line occurred. Specifically if a monthly close (last trading day of the month- since we are utilizing a monthly chart) below $1,422.00 is posted.
For more research www.thechartlab.com
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.