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.
The market, as a whole, is going through a tough day. The S&P 500 (INDEXSP:.INX), the NASDAQ Composite (INDEXNASDAQ:.IXIC) and the Dow Jones Industrial Average (INDEXDJX:.DJI) are all down on Tuesday afternoon.
Despite the pullback in the broader market, consumer staples stocks are outperforming “on a safety bid as well as a dividend trade” with a pullback in yields, analysts at JPMorgan explain.
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Across staples, the outperformers are:
- Dr Pepper Snapple Group Inc. (NYSE: DPS), up about 2.2 percent
- Coca-Cola Enterprises Inc (NYSE: CCE), surging more than 2.4 percent
- Altria Group Inc (NYSE: MO), returning 3.17 percent
- Procter & Gamble Co (NYSE: PG), up roughly 1.3 percent
- Clorox Co (NYSE: CLX), which rose more than 1.3 percent
In the staples and direct sellers industries, however, some stocks came under pressure due to the strength in the U.S. Dollar. This is the case for:
- Edgewell Personal Care Co (NYSE:EPC) (NYSE: ENR), down 2.7 percent
- Avon Products, Inc. (NYSE: AVP), which fell slightly in the morning before recuperating in the afternoon
- Tupperware Brands Corporation (NYSE: TUP), which lost almost 1 percent
- Herbalife Ltd. (NYSE: HLF), which tumbled more than 2.7 percent
- Nu Skin Enterprises, Inc. (NYSE: NUS), which is down 1.8 percent in afternoon hours
The pullback in crude oil, however, is benefiting retailers, which are, in general, trading nicely. Nonetheless, accessories stocks are lagging. Within the outperforming retailers, the following companies can be counted:
- Costco Wholesale Corporation (NASDAQ: COST), up 2.9 percent
- Kohl's Corporation (NYSE: KSS), up 3.2 percent
- J C Penney Company Inc (NYSE: JCP), up 3.5 percent
- Nordstrom, Inc. (NYSE: JWN), up 2.6 percent
- GameStop Corp. (NYSE: GME), up 2.4 percent
- Kroger Co (NYSE: KR), up 2.45 percent
On the other hand, accessories retailers underperforming are:
- Coach Inc (NYSE: COH), mostly flat
- Michael Kors Holdings Ltd (NYSE: KORS), which fell in the morning hours but is now up almost 0.8 percent, in the afternoon hours
- Vera Bradley, Inc. (NASDAQ: VRA), falling 0.4 percent
- Tumi Holdings Inc (NYSE: TUMI), down more than 1 percent
- Dillard's, Inc. (NYSE: DDS), down more than 0.6 percent
Finally, restaurants seem to be performing poorly as well, with global names lagging:
- Starbucks Corporation (NASDAQ: SBUX) fell 0.2 percent
- Yum! Brands, Inc. (NYSE: YUM) dropped 1 percent
- Arcos Dorados Holding Inc (NYSE: ARCO), a McDonald's franchisee, plummeted almost 2.7 percent
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.