July 10, 2015 6:50 AM | 1 min read |
On CNBC's Options Action, Mike Khouw spoke about unusually high bullish options activity in
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.
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.
(NYSE: JPM) ahead of earnings report on July 14. More than 100,000 call options contracts were traded on Thursday, which is twice the daily average call options volume.The most of the Thursday's volume happened in the July 67.5 / 70 one by two call spread. The traders bought 20,000 contracts of the July 67.5 calls and sold 40,000 contracts of the July 70 calls and paid around $0.40 for the structure. Khouw added that the size of the spread is approximately equal to the average move on the earnings over the last 8 quarters. He thinks that this is a smart way to make a bullish bet that the stock is going to move 5.5 percent after earnings.
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