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.
Despite beating earnings estimates, shares of BlackRock, Inc. (NYSE:BLK) are trading down Wednesday.
How BLK performs over the next few months may be determined by how the stock acts if it trades around the important $889 level.
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This level was resistance in June. If it converts into a support level, it could be the base for a new uptrend. But if not, the stock could begin to trend lower.
Levels that were previously resistance converting into support is a common occurrence in financial markets.
Investors who sold their shares at $889 will regret their decision when the stock trades at a higher price. A number of these investors will decide to buy their shares back, but only if they can get them for the same price they sold at.
As a result, they place their buy orders at their selling price: in this case, $889.
If there are enough of these buy orders, it will convert the level into support. This is bullish and sets the stage for another move higher.
But if there aren’t enough of these buy orders, the stock will fall back below this important level. It could set the stage for a new downtrend to form.
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.