May 14, 2021 7:23 AM | 1 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.
On
CNBC's "Options Action," Tony Zhang spoke about unusual options activity in
ARK Innovation ETF (NYSE:
ARKK). The ETF traded almost 20% lower in the last three weeks and during the sell-off, on Thursday, the options volume was four times the average daily volume, said Zhang. He saw a fairly unusual trade in the name. There was a purchase of 4,000 contracts of the May $85/$102/$109 call spread risk reversal at $1.47. The options structure is pretty common, but it is unusual that it expires next Friday. The trader sold the May $85 put, bought the May $102 call and sold the May $109 call for a debit of $1.47. The trade breaks even at $103.47 or around 4% above the closing price on Thursday. Its maximal profit is $5.53.
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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