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.
Sean Udall thinks that the January effect is one of the most profound seasonal impacts of trading and investing.
Udall is the CIO of Quantam Trading Strategies and the author of the TechStrat Report. He recently joined Benzinga’s #PreMarket Prep to talking about what he’ll be looking at to play for the January effect.
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Udall explained that this will be an interesting year for the January effect because the market saw two corrections in 2014.
“A lot of those companies haven't really recovered, especially stuff that’s under the large-cap realm,” he said.
One of Udall’s top names for the January effect is RingCentral Inc (NYSE: RNG). Although RingCentral is caught in the middle of the “All IPOs are overvalued” trend, Udall said, the company has never missed a quarter.
“It was never super expensive as a new, high-growth company, but it’s just down right almost stupid here (at the current price),” he said.
Another stock Udall thinks will be interesting is Pandora Media Inc (NYSE: P). Udall said he used to be short in this stock, but now is long.
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$P my Jan 21's/23's just in pure flat go for the gold mode
— Stock007 (@UdallTechStrat) November 14, 2014“I think Pandora could get the January effect in combo with renewed M&A rumors,” he said.
Udall said he could have a list of 100 stocks to play during the January effect this year because so many companies were impacted by the correction.
“And a lot of this stuff hasn’t come back even though their fundamental growth picture is really good,” he said.
Udall also talked about Google Inc (NASDAQ: GOOG), Apple Inc. (NASDAQ: AAPL) and Twitter Inc (NYSE: TWTR).
Check out his full interview here:
Don’t forget to tune in to Benzinga’s #PreMarket Prep broadcast Monday-Friday 8-9:45 a.m. ET for a live, interactive morning show with veteran traders and featured finance industry experts ready to answer your questions for the trading day.
Image credit: Rachel Kramer, Flickr
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.