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.
Technical analyst and independent trader Roberto Pedone recently mentioned a few stocks he is watching. This article will take a look at four of them, their corresponding charts and the expert’s insight.
Pedone thinks Twitter Inc (NYSE: TWTR) is “overdone to the downside and setting up to bounce soon.” He says the MACD looks ready to activate a bullish crossover and the stock had “a solid volume day off a PR detailing their partnership with Google in regards to search.”
The trader sees the stock still stuck in a range around $36.50-$38.00, following the plunge experienced after earnings, and says he wants to see it close over $38 to $38.20 with volume “to signal this is ready to run to the upside.”
The analyst adds that he would also consider $39 a crucial resistance level to keep an eye on if it does go soon. “You can use $37 as support or that recent range low of $36.52. A close over $38 is what I want to see with volume to give me some confidence this is ready to go,” he concludes.
Alibaba
Another stock in Mr. Pedone’s watchlist is Alibaba Group Holding Ltd (NYSE: BABA). The expert says he loves the chart featured above and thinks the Chinese Internet company is setting up for a breakout play. “As long as BABA holds that gap-up low of around $85 from earlier this month, then it looks ready to go soon,” he explains. “That's your major support level, but you can use $87-$86.27 too, which are previous breakout levels. A high-volume move above $89.29 to $90 and then around $92.50 sets up BABA to fill its previous gap-down-day zone from January that started near $102.”
Bottom Line
The trader recommends Alibaba and Twitter as “great options candidates as well as solid higher-priced setups.”
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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