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.
Shares of Intel Corporation (NASDAQ:INTC) were hit hard on Friday, falling more than 5%. This was the result of an earnings report that some investors thought was negative and they aggressively sold their shares.
However, there’s a good chance the stock stages a rebound from here. Not only is it oversold, but it has also reached a level that previously provided support.
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!
Oversold means that the stock has reached an extreme below its recent average trading range.
See Also: 5 Intel Stock Analysts On Chipmaker's Q1 Results, Foundry Strategy, Investments
The red line on the chart below is two standard deviations below the recent 20-day average price. Statistics and probabilities theory state that all trading should be within two standard deviations of the average.
Intel has exceeded this important threshold to the downside. This will get the attraction of computerized trading systems that are based on statistics. They will be expecting a reversion to the mean so they will be buying.
Support is a level where there is more demand for a stock than there is supply. When stocks sell off and reach support levels, they typically rebound. This is what happened with Intel in early March.
Intel is both oversold and at support, so there’s a good chance the stock rebounds.
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.