May 21, 2015 2:52 PM | 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.
Newsome, the CEO of RealLifeTrading.com, discussed trading strategies on
NetApp Inc. (NASDAQ: NTAP) following its earnings report in which the company's earnings per share and revenue fell short of expectations."The fact that [NetApp] broke $33 [per share] on the daily chart, I'll be looking to short this at some point," Newsome said. "Very similar to
Lumber Liquidators Holdings Inc (NYSE: LL) it is a strong gap, it is ‘sloshed,' its down far. That $31 level is $4 and over 10 percent."Newsome continued he will wait before shorting before further conviction can be made that "there is really not much stopping NetApp's downside to at least $29. On a daily chart, there is nothing."Newsome continued that he has a trading strategy that is appropriate for shorting shares that have already seen noticeable downside. He said that he would enter a short trade position up to two separate times, and if neither trade proves to be profitable he won't touch the stock the rest of the day."If I lost on NetApp the first try, I have one more shot," he said. The trading pro added that it is important "not to get emotional" because traders that are emotional "lose money every time.""No revenge trades. I just move on."
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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