February 13, 2013 1:21 PM | 2 min read |
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.
Officials with EnergyCorporation of America (the "Company") announced today that theCompany has commenced an offer to exchange (the "Offer")approximately 4.1 million common units of ECA Marcellus Trust I (NYSE: ECT)that it currently owns, for up to approximately 3.2 millionDepositary Units of Eastern American Natural Gas Trust (NYSE: NGT). A leadingprivate exploration and production company, Energy Corporation ofAmerica is offering each holder of NGT Depositary Units a number ofECT Common Units valued at $22.55 for each NGT Depositary Unittendered, representing a 7.6% premium to the approximately $20.95that will be paid to NGT Depositary Unitholders following theliquidation of NGT. The $20.95 consists of the value of the TreasuryObligation at maturity plus the per unit share of the proceedsattributable to the sale of the perpetual net profits interest. NGTbegins to liquidate and wind down on May 15, 2013. The Offer willremain open until March 13, 2013 at 11:59 PM New York City time, unless extended. NGT Depositary Unitholders participating in the Offer will receiveECT Common Units valued at a 7.6% premium to the estimated cash valueof the distributions to be made to NGT Depositary Unitholdersfollowing liquidation and will acquire ECT Common Units therebyallowing such NGT Depositary Unitholders to continue the benefit ofquarterly cash distributions as long as such holders continue to ownECT Common Units or until ECT terminates in 2030. The final exchange ratio will be determined based on the volumeweighted average trading prices of ECT Common Units for the 10-dayperiod ending on the 18th business day following commencement of theOffer (or two business days prior to the expiration of the Offer ifthe Offer is extended beyond the initial 20 business day offerperiod). Upon the closing of trading on the New York Stock Exchange on the exchange ratio determination date, the Company will announce in apress release the final exchange ratio. At any time in which theOffer is open prior to such date, NGT Depositary Unitholders maycontact D.F. King & Co., Inc., the information agent for the Offer,to inquire what the exchange ratio would be if determined as of thatdate
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.
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