October 13, 2014 8:05 PM | 1 min read |
Dan Nathan spoke on
CNBC's Options Action
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.
about the price action in
SPDR S&P 500 ETF Trust (NYSE: SPY). He said that the options trading volume was almost two times higher than the average daily volume on Monday and the puts outnumbered calls three to one. Nathan noticed one big trade that took place in the morning session as one trader tried to monetize a hedge. The November 185/180 1x2 put spread was sold to close for a $1. This means that the trader no longer believes that the S&P 500 is going to trade below $184 at the November expiration.The volume in the early session was lighter than the Friday's volume, but when the S&P 500 broke the critical technical support the traders rushed to put the hedges back on and the volume increased, added Nathan. He also explained that the volatility spiked to 18, which is its two-year high.
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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