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.
David Woodhouse, Insider at Ngm Biopharmaceuticals (NASDAQ:NGM), made a large buy and sell of company shares on November 18, according to a new SEC filing.
What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission states that David Woodhouse exercised options to purchase 15,000 Ngm Biopharmaceuticals shares at a price of $7.54 per share for a total of $113,100 on November 18. They then sold their shares on the same day in the open market. They sold at a price of $20.02 to raise a total of $300,300 from the stock sale.
Following the transaction, Woodhouse still owns 80,000 shares of the company, worth $1,584,800.00.
Ngm Biopharmaceuticals shares are trading down 0.75% at $19.81 at the time of this writing on Monday morning.
Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.
Why Insider Transactions Are Important
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 Ngm Biopharmaceuticals's Insider Trades.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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.
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!