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.
After a massive debut in September in US equity markets, Alibaba Group Holding Ltd (NYSE: BABA) is up for a similar debut in the bond markets. As Bloomberg reported in a piece on Thursday, Alibaba “has $43 billion of orders from investors in a debut bond offering, more than five times what the company was said to be seeking, people with knowledge of the deal said.
ENTER TO WIN $500 IN STOCK OR CRYPTO
Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!
Now, the earlier figure of $8 billion that Alibaba was seeking to raise has been increased even further to $10 billion, according to Dow Jones. CNBC’s David Faber elaborated on this report from Dow Jones.
“Dow Jones reporting a short time ago that Alibaba could upsize that debut bond deal to as much as $10 billion dollars that they are setting an investor for, I have not confirmed this. Alibaba, also they say, having received more than $55 billion in orders for that sale, citing sources. Regardless of where it ends up, whether its $8 or $10 billion, it will be the debut of course for Alibaba in the US fixed-income investment grade market for debt.”
Faber highlighted a pattern developing from large Tech companies that go for IPOs, “Twitter went public, did a bond deal, Facebook went public, did a bond deal. So, (the part of maturation somewhere) of these companies of course. This company having gone public only what two months or so […]”
Faber thinks that there is some kind of hedging going on in the hedge fund community, where they are selling Alibaba shares and buying Yahoo! Inc. (NASDAQ: YHOO)’s shares. He attributed this hedging to the recent decline in Alibaba’s shares and the rise of Yahoo’s shares.
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.