November 4, 2014 10:27 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.
On
CNBC's Fast Money, Dan Nathan used technical analysis to show that
Google Inc (NASDAQ: GOOGL) (NASDAQ: GOOG) is approaching a death cross, which is a bearish technical pattern. For a death cross to appear on a chart the 50-day moving average has to cross below 200-day moving average and the stock has to fail to make new highs before the cross.Nathan thinks that
Google should trade lower, close to $500 and he decided to buy a put spread in the name to exploit the move lower. To prove that the death cross could lead to severe losses, he used a 10 percent decline in
iShares Russell 2000 Index (ETF) (NYSE: IWM). The move lower in the ETF happened after the death cross appeared on the chart.Steve Grasso commented that he likes better a golden cross because the death cross pattern is not very reliable.
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.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.