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 both Walmart Inc. (NYSE:WMT) and Lowe's Companies, Inc. (NYSE:LOW) may each be in trouble, but for different reasons.
Walmart is trading just below an important resistance level. The sellers who have gathered around $143.50 have kept a top on the stock for more than a month. If shares can’t break through this important level over the next week or two, there’s a good chance that a new downtrend forms.
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There’s no clear resistance hanging over Lowes, but the shares are overbought.
Many computerized trading algorithms are based on probability theory. And it states that 95% of all trading should be within two standard deviations of the average.
The red line on the following chart is two standard deviations above the 20-day moving average price. When the stock exceeds this threshold the algos sell it because they anticipate a revision to the average.
This puts pressure on the stock and could force the price lower. It has happened three times since March and it may be happening again.
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.