June 22, 2010 12:26 PM | 1 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.
Shares of Ralcorp Holdings Inc. (NYSE: RAH) are lower on the session by 2.58%, currently trading at $55.80. The stock fell sharply yesterday, on high volume, after saying it plans to acquire American Italian Pasta Co. (NASDAQ: AIPC) for $1.2 billion. The company issued a weak profit forecast for the current quarter as well, blaming the shortfall on a price war between cereal makers.Options traders are selling puts on the name today, though, betting that the slide is over. The July $55 put was sold 2,800 times, near the bid; open interest on the strike is only 56 contracts. Put volume is now running at 95x the daily average. Ralcorp Holdings, Inc. is engaged in the manufacturing, distributing and marketing post branded cereals and a variety of store brand (private label) food products in the grocery, mass merchandise, drug and foodservice channels.
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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