27% profits every 20 days?
This is what Nic Chahine averages with his options 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.
With lower oil prices in the headlines, stocks of various transportation sub-industries have been diverging.
For example, trucking, airline and air freight stocks, on the whole, have been rising. Railroads, which typically benefit from lower fuel prices, are chugging along at a much slower speed.
In terms of their S&P categorization, transports are a sub-industry within the broader industrials sector. As such, there aren't too many mutual funds focusing on simply transports; most transportation stocks are held within market-cap funds, or those employing a particular style of investment, such as growth or value.
Fidelity Select Air Transportation Portfolio
One very specialized fund, the Fidelity Select Portfolios Air Transportation Portfolio (MUTF: FSAIX) has flown to a year-to-date total return of 25.8 percent.
The fund typically invests at least 80 percent of its assets in companies operating passenger and cargo airlines, as well as aviation equipment makers and companies that provide services to the aviation industry. It invests in U.S. and overseas stocks.
The fund's assets total $545.4 million.
Top holdings are:
- Boeing Co (NYSE: BA)
- United Parcel Service, Inc. (NYSE: UPS)
- American Airlines Group Inc (NASDAQ: AAL)
- Delta Air Lines, Inc. (NYSE: DAL)
- Precision Castparts Corp. (NYSE: PCP)
Rydex Series Trust Transportation Fund
A fund with a broader mandate within the transportation sub-sector is the Rydex Series Trust Transportation Fund Class Investor (MUTF: RYPIX).
The fund seeks to invest at least 80 percent of assets in U.S.-traded transportation stocks. It also invests in derivatives, such as futures and options. It may also invest in purchase American Depositary Receipts of foreign transportation companies.
This is a smaller fund, with total assets of $109.8 million.
The fund's year-to-date total return is 15.6 percent.
Top holdings are:
- Union Pacific Corporation (NYSE: UNP)
- United Parcel Service
- FedEx Corporation (NYSE: FDX)
- Ford Motor Company (NYSE: F)
- General Motors Company (NYSE: GM)
27% profits every 20 days?
This is what Nic Chahine averages with his options 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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