April 10, 2014 8:10 AM | 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.
(NASDAQ: KANG) offers preventive healthcare solutions for medical examinations and other services including disease screening. They seek to reduce future healthcare costs by detecting and preventing injury and disease to promote overall better health.iKang priced its 10.9M share IPO at $14 per share to raise $150M. Shares began trading on the NASDAQ for $16.50 shortly after 10:00 a.m.The stock moved higher to $17.25 before fading off to close on the low of $15.20. IPO investors found themselves with an 8.5% gain for the day, while anyone buying on the open market is sitting on a loss.
La Quinta Holdings (NASDAQ: LQ) came out of the gate with a slow start causing some investors to question the current IPO activity.
IPO's for April 10th, 2014- Adamas Pharmaceuticals (NASDAQ: ADMS): 3M shares are offered between $16 and $18 through Credit Suisse and Piper Jaffray.
- Ally Financial (NYSE: ALLY): The US Treasury is selling 95M shares between $25 and $28.
- Cerulean (NASDAQ: CERU): 5M shares are being offered between $11 and $13 through Leerink.
- Farmland Partners (NYSE: FPI): 4.7M shares are expected to price between $14 and $16 through Baird, BMO Capital, and Janney, Montgomery, Scott.
- Stalwart Tankers (NYSE: STST): 12.5M shares are expected to price between $11 and $13 through Jefferies, Wells Fargo, Global Hunter, Pareto, and UniCredit.
Tomorrows IPO to watch is Ally Financial. The US Treasury is selling a major portion of its stake in former GMAC. CEO Mike Carpenter took control in 2009 and since then has shifted the company's focus towards auto loans, the original purpose of GMAC. Since 2010, the company has struggled with declining sales year-over-year, making it the third largest U.S. lender for auto-finance. The firm's focus on auto-loans could cause investors who seek to own more diversified companies to be wary.The major change of corporate direction combined with a nearly $2.5B sale by the US Treasury makes Ally Financial's IPO one to watch tomorrow.
Disclosure: At the time of this writing, the author holds no positions in any aforementioned securities; however, at a future time, he may choose to hold long or short positions without notice.
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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