27% profits every 20 days?
This is what Nic Chahine averages with his options 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.
U.S. stocks kicked off the week on a positive note, gaining momentum as traders eagerly await a week packed with crucial corporate earnings reports, including Bank of America (NYSE:BAC), Morgan Stanley (NYSE:MS), Goldman Sachs (NYSE:GS), Tesla Inc. (NASDAQ:TSLA) and Netflix Inc. (NASDAQ:NFLX).
Despite initial concerns sparked by disappointing growth figures from China, the session saw a rebound for major U.S. indices, signaling renewed investor confidence. Interviewed on Bloomberg TV this morning, Janet Yellen said she does not believe the United States will enter a recession.
The U.S. dollar remained stable throughout the day, with the DXY index trading at its 15-month lows, showing only a slight 0.5% increase since the Federal Reserve began raising rates in March 2022. Meanwhile, U.S. yields remained relatively unchanged, with the 10-year benchmark at 3.8%.
Cues From Monday’s Trading:
The S&P 500 Index gained 0.4%, breaking above 4,500 levels, while the Dow Jones ticked 0.2% higher. The tech-heavy Nasdaq 100 Index rose 0.7% while small caps in the Russell 2000 soared 1.1%.
US Index Performance In On Monday
| Value | Performance (+/-) | Value |
| Nasdaq 100 | +0.74% | 15,689.77 |
| S&P 500 | +0.34% | 4,520.16 |
| Dow Industrials | +0.23% | 34,588.65 |
| Russell 2000 | +1.10% | 1,952.32 |
Analyst Color:
While some analysts express unease over the market run-up since it hit a low in October last, Ryan Detrick of Carson Group sees scope for further upside.
The analyst noted that the S&P 500 is 26% above the mid-term election year closing low set on Oct. 12. "Amazing as this is, this is actually perfectly normal," he said.
Stocks gained more than 32% on average a year after the mid-term year low, Detrick noted.
Thursday’s Trading In Major US Equity ETFs: In midday trading on Thursday, the SPDR S&P 500 ETF Trust (NYSE:SPY) was 0.3% higher to $450.66, the SPDR Dow Jones Industrial Average ETF (NYSE:DIA) rose 0.2% to $345.85 and the Invesco QQQ Trust (NASDAQ:QQQ) was 0.7% higher to $381.57, according to Benzinga Pro data.
U.S. sectors showed mixed performance. The Technology Select Sector SPDR Fund (NYSE:XLK) and the Financial Select Sector SPDR Fund (NYSE:XLF), outperformed, both up 1%.
The Real Estate Select Sector SPDR Fund (NYSE:XLRE) and the Energy Select Sector SPDR Fund (NYSE:XLE), underperformed, down 0.6% and 0.5%, respectively.
Latest Economic Data:
The NY Empire State Manufacturing Index decreased 5.5 points from the previous month to +1.1 in July 2023, exceeding market expectations of -4.3.
See also: How To Trade Futures
Stocks In Focus:
- First Solar Inc. (NASDAQ:FSLR) rose 6%, on track for the best session since over two months, solar module deal with Energix.
- AT&T Inc. (NYSE:T) dropped about 5% on Monday, on track for the lowest close in 30 years and continuing a recent decline following a Wall Street Journal investigation.
- Apellis Pharmaceuticals Inc (NASDAQ:APLS) fell 21% on track for biggest one-day pct decline since Sept 2021; analysts cite doctor reports of intraocular inflammation (IOI) after treatment with its Syfovre.
- Tesla rose over 2.5% in premarket trading as traders reacted to the production of the first Cybertruck and also looked ahead to its earnings report due Wednesday.
- Activision Blizzard, Inc. (NASDAQ:ATVI) rallied over 3% after the Federal Trade Commission lost its appeal to block the video game software manufacturer’s deal with Microsoft Corp. (NASDAQ:MSFT).
Commodities, Bonds, Other Global Equity Markets:
Crude oil fell 1%, with a barrel of WTI-grade crude trading at $74.40. The United States Oil Fund ETF (NYSE:USO) was 0.8% lower to $66.90.
Treasury yields slightly fell, with the 10-year yield up by 1 basis points to 3.82% and the two-year yield down by 2 basis points to 4.75%. The iShares 20+ Year Treasury Bond ETF (NYSE:TLT) was 0.4% lower for the day.
The dollar fell, with the U.S. dollar index, which is tracked by the Invesco DB USD Index Bullish Fund ETF (NYSE:UUP), down 0.1%. The EUR/USD pair, which is tracked by the Invesco CurrecyShares Euro Currency Trust (NYSE:FXE), was 0.1% higher to 1.1234.
European equity indexes closed in the green. The SPDR DJ Euro STOXX 50 Etf (NYSE:FEZ) fell 0.4%.
Gold held steady $1,955/oz. The SPDR Gold Trust (NYSE:GLD) was flat at $177. Silver fell 0.4% to $24.80, with the iShares Silver Trust (NYSE:SLV) down 0.3% to $22.80. Bitcoin (CRYPTO: BTC) was 0.1% lower to $30,207.
Staff writer Piero Cingari updated this report midday Monday.
Image Credits – Shutterstock
27% profits every 20 days?
This is what Nic Chahine averages with his options 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!