August 5, 2011 7:10 AM | 2 min read |
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.
FRANKFURT - The euro threw back a shot of espresso when markets opened in Europe and now waits nervously for direction from the US.The euro rose to over the 1.4170 level against the US dollar after hitting a three-week overnight low of approximately 1.450.Market commentators say traders are anxiously awaiting the release of non-farm payroll data due out at 08:30, an hour before the bell in New York.According to a poll by Reuters, analysts expect jobs to have increased by 85,000 for July compared to the 18,000 created in June.According to
Deltastock, the EUR/USD is in consolidation after the 1.4941 top on May 4. Deltastock says if a break through 1.4050 occurs, then the target will be 1.3995 and 1.3950. If there is a break through that level, then you should expect the new target to be 1.3840.The reaction of the euro after the release of payroll data in the US could be extremely volatile, traders say. Volatility could also exacerbated by the intervention of central banks trying to get liquidity flowing.After the biggest Dow Jones Industrial shellacking in nearly three years, there is sure to be many more chewed off fingernails today.Better than expected payroll data could give the euro a bounce. If the payroll data comes in much worse than expected, the dollar could soar.
ACTION ITEMS:Bullish:Traders who believe that euro will strengthen might want to consider the following trades:
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- Rydex CurrencyShares Euro Trust (NYSE: FXE)
- Market Vectors Double Long Euro ETN (NYSE: URR), a leveraged exchange-traded note that is 2x bullish the euro
Bearish:Traders who believe that euro will fall may consider these alternate positions:
- The 2x leveraged Market Vectors Double Short Euro ETN (NYSE: DRR)
- the 2x leveraged ProShares UltraShort Euro (NYSE: EUO)
- Investors wishing to go long the U.S. dollar can buy PowerShares DB USD Index Bullish (NYSE: UUP)
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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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