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.
Nic Chahine was recently a guest on #PreMarket Prep, a daily trading idea radio show hosted by Joel Elconin and Dennis Dick.
Create Income With Options Spreads Author Nic Chahine talked about Ctrip.com International, Ltd. (ADR) (NASDAQ: CTRP) Tuesday on the show.
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Chahine noted how the stock had soared over 80 percent since March when it traded at the $45 level.
On May 14, Chahine told traders that the stock had a bullish setup and established an $80-$82 target, which was followed by the stock moving to new highs at the $84 level on May 22.
Whether or not traders should take a position in the stock at this time, however, was a different matter.
Ctrip.com had been best for traders already on-board, Chahine indicated, who were able to capture the recent upward moves.
At current levels and with its fast run higher, the stock was “too high to chase and too hot too short,” Chahine said, suggesting that traders could easily get burned if the stock became volatile.
“I’ll sit back and see what the market does with it, and then decide...but would definitely not short it...because it's got momentum,” Chahine concluded.
An example of the potential volatility was seen in Tuesday’s price action. While the stock opened higher Tuesday, it headed lower in the morning and closed at $81.99, down 3.12 percent.
Listen to the show here:
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.