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.
This whale alert can help traders discover the next big trading opportunities.
Whales are entities with large sums of money and we track their transactions here at Benzinga on our options activity scanner.
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Traders will search for circumstances when the market estimation of an option diverges heavily from its normal worth. High amounts of trading activity could push option prices to exaggerated or underestimated levels.
Below are some instances of options activity happening in the Health Care sector:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|
| NVS | CALL | SWEEP | BULLISH | 07/15/22 | $90.00 | $48.2K | 1.9K | 2.0K |
| MRK | CALL | TRADE | BULLISH | 07/15/22 | $97.50 | $106.8K | 5.2K | 1.3K |
| GSK | PUT | SWEEP | NEUTRAL | 08/19/22 | $48.00 | $31.9K | 23 | 592 |
| GH | PUT | SWEEP | BULLISH | 12/15/23 | $50.00 | $225.1K | 0 | 508 |
| EW | CALL | SWEEP | BULLISH | 01/20/23 | $125.00 | $101.2K | 347 | 423 |
| STE | CALL | TRADE | BULLISH | 07/15/22 | $220.00 | $68.1K | 127 | 375 |
| AGIO | PUT | SWEEP | BEARISH | 02/17/23 | $25.00 | $26.5K | 0 | 342 |
| AMGN | CALL | TRADE | BEARISH | 06/16/23 | $250.00 | $102.5K | 16 | 239 |
| DVA | CALL | SWEEP | BEARISH | 01/20/23 | $90.00 | $126.5K | 107 | 232 |
| LLY | CALL | TRADE | NEUTRAL | 01/20/23 | $340.00 | $27.5K | 1.5K | 73 |
Explanation
These bullet-by-bullet explanations have been constructed using the accompanying table.
• For NVS (NYSE:NVS), we notice a call option sweep that happens to be bullish, expiring in 18 day(s) on July 15, 2022. This event was a transfer of 2000 contract(s) at a $90.00 strike. This particular call needed to be split into 13 different trades to become filled. The total cost received by the writing party (or parties) was $48.2K, with a price of $24.0 per contract. There were 1954 open contracts at this strike prior to today, and today 2006 contract(s) were bought and sold.
• Regarding MRK (NYSE:MRK), we observe a call option trade with bullish sentiment. It expires in 18 day(s) on July 15, 2022. Parties traded 1200 contract(s) at a $97.50 strike. The total cost received by the writing party (or parties) was $106.8K, with a price of $89.0 per contract. There were 5242 open contracts at this strike prior to today, and today 1372 contract(s) were bought and sold.
• For GSK (NYSE:GSK), we notice a put option sweep that happens to be neutral, expiring in 53 day(s) on August 19, 2022. This event was a transfer of 68 contract(s) at a $48.00 strike. This particular put needed to be split into 3 different trades to become filled. The total cost received by the writing party (or parties) was $31.9K, with a price of $470.0 per contract. There were 23 open contracts at this strike prior to today, and today 592 contract(s) were bought and sold.
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• Regarding GH (NASDAQ:GH), we observe a put option sweep with bullish sentiment. It expires in 536 day(s) on December 15, 2023. Parties traded 105 contract(s) at a $50.00 strike. This particular put needed to be split into 5 different trades to become filled. The total cost received by the writing party (or parties) was $225.1K, with a price of $2146.0 per contract. There were 0 open contracts at this strike prior to today, and today 508 contract(s) were bought and sold.
• Regarding EW (NYSE:EW), we observe a call option sweep with bullish sentiment. It expires in 207 day(s) on January 20, 2023. Parties traded 422 contract(s) at a $125.00 strike. This particular call needed to be split into 22 different trades to become filled. The total cost received by the writing party (or parties) was $101.2K, with a price of $240.0 per contract. There were 347 open contracts at this strike prior to today, and today 423 contract(s) were bought and sold.
• Regarding STE (NYSE:STE), we observe a call option trade with bullish sentiment. It expires in 18 day(s) on July 15, 2022. Parties traded 290 contract(s) at a $220.00 strike. The total cost received by the writing party (or parties) was $68.1K, with a price of $235.0 per contract. There were 127 open contracts at this strike prior to today, and today 375 contract(s) were bought and sold.
• For AGIO (NASDAQ:AGIO), we notice a put option sweep that happens to be bearish, expiring in 235 day(s) on February 17, 2023. This event was a transfer of 45 contract(s) at a $25.00 strike. This particular put needed to be split into 4 different trades to become filled. The total cost received by the writing party (or parties) was $26.5K, with a price of $590.0 per contract. There were 0 open contracts at this strike prior to today, and today 342 contract(s) were bought and sold.
• Regarding AMGN (NASDAQ:AMGN), we observe a call option trade with bearish sentiment. It expires in 354 day(s) on June 16, 2023. Parties traded 50 contract(s) at a $250.00 strike. The total cost received by the writing party (or parties) was $102.5K, with a price of $2050.0 per contract. There were 16 open contracts at this strike prior to today, and today 239 contract(s) were bought and sold.
• Regarding DVA (NYSE:DVA), we observe a call option sweep with bearish sentiment. It expires in 207 day(s) on January 20, 2023. Parties traded 230 contract(s) at a $90.00 strike. This particular call needed to be split into 36 different trades to become filled. The total cost received by the writing party (or parties) was $126.5K, with a price of $550.0 per contract. There were 107 open contracts at this strike prior to today, and today 232 contract(s) were bought and sold.
• Regarding LLY (NYSE:LLY), we observe a call option trade with neutral sentiment. It expires in 207 day(s) on January 20, 2023. Parties traded 10 contract(s) at a $340.00 strike. The total cost received by the writing party (or parties) was $27.5K, with a price of $2751.0 per contract. There were 1545 open contracts at this strike prior to today, and today 73 contract(s) were bought and sold.
Options Alert Terminology
- Call Contracts: The right to buy shares as indicated in the contract.
- Put Contracts: The right to sell shares as indicated in the contract.
- Expiration Date: When the contract expires. One must act on the contract by this date if one wants to use it.
- Premium/Option Price: The price of the contract.
For more information, visit our Guide to Understanding Options Alerts or read more about unusual options activity.
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.