Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.
Alibaba Group Holding Ltd (NYSE: BABA) shares were trading lower by $1.37 (1.5 percent) at $84.10 in Tuesday's session. After failing to hold above Monday's closing price ($85.47), briefly reaching $85.53, it began to move lower.
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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The decline gathered momentum as it breached Monday's low ($85.25), which was its lowest level since making its all-time high on November 13 ($120.00). It had moved down that elevated level to the $100.00 area ahead of its Q3 earnings report, which beat on EPS ($0.81 vs. $0.75), but came up shy on the revenue end ($4.22 billion vs. $4.45 billion).
The issue was not able to recover much of the nearly $9.00 loss on January 29, rebounding to $92.00 over the next few trading sessions before beginning another leg lower. The intraday low of $83.88 stands a little over $1.00 higher than its all-time low that was made on October 15 ($82.81).
Keep in mind, the all-time low is still more than $14.00 higher than the original pricing for the issue ($68.00) when it debuted on the NYSE on September 19, 2014.
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.