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.
Even though most market participants are still debating whether Fed will bite the bullet and raise rates this year.
Bill Gross from Janus Capital Group Inc (NYSE: JNS) firmly believes that Fed will raise rates, albeit only as a ‘symbolism.’
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Gross spoke with CNBC following the FOMC minutes on Wednesday.
“I think the Fed will raise rates by 25 basis points sometime this year,” Gross said. “Their statement indicate that they still believe inflation will pullback to relatively normal levels on the medium-term and they recognize the economy is stronger. All of those points, but let me suggest that the real reason that they want to raise interest rates at least symbolically is that even in the face of this low inflation they recognize that 0p interest rates or near 0p money market rates are distorting capitalism.”
He continued, “And that the 0p interest rates are moving money into the financial sector for arbitrage, profits and very little of that is going to the real economy for investments and so to begin to correct that and even if only symbolically, I think, they want to get off the 0 line.”
When Do You Think Fed Raising These 25 Basis Points?
“I see it sometime around June,” Gross said. “I mean, most Fed governors and market participants, Fed participants have suggested that June is a satisfactory point and absent of further decline in oil…and absent further deflationary condition in Euro and or perhaps surprises from China in terms of their growth rates, which I think is all are important and in combination to a continuing strong dollar, which would be deflationary here in the United States. I think the expected is June or perhaps the meeting after June because they want to send a signal to the market participants.”
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.