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.
Bradley Lerman, SVP General Counsel And Corporate Sec at Medtronic (NYSE:MDT), made a large buy and sell of company shares on September 30, according to a new SEC filing.
What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission states that Bradley Lerman exercised options to purchase 49,147 Medtronic shares at a price of $78.00 per share for a total of $3,833,466 on September 30. They then sold their shares on the same day in the open market. They sold at a price of $126.58 to raise a total of $6,221,027 from the stock sale.
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Following the transaction, Lerman still owns 48,763 shares of the company, worth $6,261,169.
Medtronic shares are trading up 0.86% at $128.4 at the time of this writing on Monday morning.
The Importance of Insider Transactions
Insider transactions shouldn't be used primarily to make an investing decision, however, they can be an important factor for an investor to consider.
In legal terms, an "insider" refers to any shareholder who owns at least 10% of a company. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.
When a company insider makes a new purchase, that is an indication that they expect the stock to rise.
Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.
Transaction Codes To Focus On
Investors prefer focusing on transactions that take place in the open market, indicated in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S indicates a sale. Transaction code C indicates the conversion of an option, and transaction code A indicates the insider may have been forced to sell shares in order to receive compensation that had been promised upon being hired by the company.
Check Out The Full List Of Medtronic's Insider Trades.
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.