December 29, 2014 8:39 AM | 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.
RB Trader picked up unusual option activity in Manitowoc Company (NYSE: MTW) on Friday, with an aggressive call buyer buying 1889 of the MTW February 23 calls at an average price of 0.65, with the volume at more than 17 times the previous open interest. The buying pressure drove the implied volatility of the option from 42 percent to nearly 45 percent, even with the stock rising 86 cents on Friday. This morning, a 13D filing shows Carl Icahn disclosing a 7.77% stake in Manitowoc with plans to push the company to split itself in two, Shares of MTW are up over 11 percent in pre-market trading, with the February 23 calls poised to rise over 100 percent in one day on the news. With not always the case, following unusual option activity can sometimes give an indication of large knowledgeable traders pre-positioning in front of news.
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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