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.
For the most part since the beginning of June, the Canadian dollar has experienced a very strong move from 1.045 down below 0.9650. At the end of August, the Canadian dollar was finding strong support at 0.9850 and in doing so established a short and narrow trading range between 0.9850 and 0.9950. For the most part since, the Canadian dollar has remained below the key 0.9850 level.
At the beginning of September, the Canadian dollar broke through the 0.9850 level and continued lower to trade down at levels not seen for 12 months around 0.9650. In the last month or so, the Canadian dollar has reversed strongly and moved back to 0.9850 where it sat a couple of weeks ago trying to push higher. As expected this level provided stiff resistance and a couple of weeks ago it fell back down to support around 0.9750. In the last week or so, the Canadian dollar has pushed off the support level at 0.9750 and moved back towards 0.9850 where it was forcibly turned back and pushed back towards 0.9750 again. This price action only serves to reinforce the significance of the 0.9850 level. (Daily chart below)
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daily chart
USD/CAD | Oct 18 at 03:30 GMT |
| 0.9772/75 | H: 0.9871 | L: 0.9767 |
| S3 | S2 | S1 | R1 | R2 | R3 |
| 0.9750 | 0.9650 | 0.9400 | 0.9850 | 0.9950 | 1.0000 |
USD/CAD Technical
- During the early hours of the Asian trading session on Thursday, the Canadian dollar has continued its steady fall lower moving back towards 0.9750.
- For a few weeks, the 0.9850 level was being a solid support level and now this level has re-emerged as one of significance causing reasonable resistance last few weeks.
- Current range: trading below 0.9800.
Further levels in both directions:
- Below: 0.9750, 0.9650, and 0.9400.
- Above: 0.9850, 0.9950 and 1.0000.
October 18
- CH 6:00 (GMT) Trade Balance (Sep)
- UK 8:30 (GMT) Retail Sales (Sep)
- CA 12:30 (GMT) Wholesale Sales (Aug)
- US 12:30 (GMT) Initial Claims (13/10/2012)
- US 14:00 (GMT) Leading Indicator (Sep)
- US 14:00 (GMT) Philadelphia Fed Survey (Oct)
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.
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.