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.
Following the market opening Tuesday, the Dow traded down 1.67 percent to 17,384.08, while the NASDAQ dipped 1.72 percent to 4,689.86. The S&P also fell, dropping 1.31 percent to 2,030.15.
Leading and Lagging Sectors
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In trading on Tuesday, utilities shares were relative leaders, up on the day by about 0.01 percent. Meanwhile, top gainers in the sector included TransAlta Corp. (NYSE: TAC), up 0.8 percent, and National Grid plc (NYSE: NGG), up 0.7 percent.
Industrials shares dropped 1.22 percent in the US market on Tuesday. Top losers in the sector included Caterpillar Inc. (NYSE: CAT), down 7.5 percent, Generac Holdings Inc. (NYSE: GNRC), off 6.7 percent.
Top Headline
Caterpillar Inc. (NYSE: CAT) reported weaker-than-expected earnings for the fourth quarter and issued a weak forecast for 2015.
Caterpillar projects FY15 earnings of $4.75 per share on revenue of $50 billion. Analysts expected earnings of $6.67 per share on revenue of $55 billion.
The Peoria, Illinois-based posted a quarterly profit of $757 million, or $1.23 per share, versus a year-ago profit of $1 billion, or $1.54 per share. Excluding certain items, the company earned $1.35 per share.
Its revenue declined to $14.2 billion from $14.4 billion. However, analysts were expecting earnings of $1.55 per share on revenue of $14.2 billion.
Equities Trading UP
Silicon Image, Inc. (NASDAQ: SIMG) shares shot up 23.05 percent to $7.26 after the company agreed to be acquired by Lattice Semiconductor (NASDAQ: LSCC) in an all-cash tender offer of $7.30 per share.
Shares of CommScope Holding Company, Inc. (NASDAQ: COMM) got a boost, shooting up 7.77 percent to $23.29. TE Connectivity (NYSE: TEL) is reportedly near a seal to sell network business to CommScope Holding Company for $3 billion, Wall Street Journal reported.
AK Steel Holding Corporation (NYSE: AKS) shares were also up, gaining 3.70 percent to $4.20 after the company reported better-than-expected quarterly earnings.
Equities Trading DOWN
J&J Snack Foods Corp. (NASDAQ: JJSF) shares tumbled 13.30 percent to $99.38. J&J Snack Foods reported Q1 earnings of $0.60 per share on revenue of $212.8 million. KeyBanc downgraded J&J Snack Foods from Buy to Hold.
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Shares of Plantronics, Inc. (NYSE: PLT) were down 10.03 percent to $46.90 after the company reported downbeat Q3 earnings and issued a weak Q4 outlook.
Microsoft Corporation (NASDAQ: MSFT) was down, falling 9.76 percent to $42.42 after the company posted in-line fiscal second-quarter results. For the third quarter, the company also expected a slight sequential decline in its commercial licensing sales.
Commodities
In commodity news, oil traded up 0.58 percent to $45.41, while gold traded up 0.82 percent to $1,290.90.
Silver traded up 0.51 percent Tuesday to $18.08, while copper fell 2.20 percent to $2.49.
Eurozone
European shares were lower today. The eurozone’s STOXX 600 dropped 1.26 percent, the Spanish Ibex Index declined 1.05 percent, while Italy’s FTSE MIB Index dipped 0.78 percent. Meanwhile, the German DAX fell 1.59 percent, and the French CAC 40 slipped 1.37 percent while UK shares dropped 0.95 percent.
Economics
Durable-goods orders declined 3.4% in December, versus economists’ expectations for a 0.1% gain.
The Johnson Redbook Retail Sales Index declined 3.6% in the first three weeks of January versus December.
U.S. house prices fell 0.2% in November, according to the S&P/Case-Shiller 20-city composite.
The preliminary reading of Markit services PMI rose to 54.00 in January, versus a prior reading of 53.30. However, economists were expecting a reading of 53.80.
Sales of new homes surged 11.6% to an annual rate of 481,000 in December. However, economists were expecting a rate of 455,000.
The Conference Board's consumer confidence index climbed to 102.90 in January, versus a prior reading of 92.60. However, economists were expecting a reading of 95.50.
The Richmond Fed manufacturing index slipped to 6.00 in January, versus a prior reading of 7.00. However, economists were expecting a reading of 5.00.
The Federal Open Market Committee will begin 2-day meeting today.
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.