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.
Semiconductors stocks are tumbling on Wednesday.
The following stocks (among several others) are down at least 4 percent on Wednesday afternoon:
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- Apple Inc. (NASDAQ: AAPL)
- Linear Technology Corporation (NASDAQ: LLTC)
- Skyworks Solutions Inc (NASDAQ: SWKS)
- Analog Devices, Inc. (NASDAQ: ADI)
- Qorvo Inc (NASDAQ: QRVO)
- Cirrus Logic, Inc. (NASDAQ: CRUS)
- Micron Technology, Inc. (NASDAQ: MU)
- Exar Corporation (NYSE: EXAR)
- M/A-COM Technology Solutions Hldgs Inc (NASDAQ: MTSI)
- Avago Technologies Ltd (NASDAQ: AVGO)
Other stocks plummeting within the segment are Maxim Integrated Products Inc. (NASDAQ: MXIM), down almost 3 percent, and NXP Semiconductors NV (NASDAQ: NXPI), down 2.6 percent.
Analysts at Benzinga were wondering if the tumble is related to Linear Tech’s bad quarter (reported on Tuesday night) and the subsequent decline in the stock price, to concerns related to iPhone units, or to a combination of both elements.
To clear the air, Benzinga spoke about the weakness in semiconductors with Srini Sundararajan of Summit Research. The expert said he believes the aforementioned factors are "difficult to uncouple," but suggested the Linear Tech miss could be weighing on this group more than Apple concerns Wednesday. “Thinking further it is more LLTC than AAPL because LLTC blamed US macro economic and industrials weakness,” he concluded.
Also on Wednesday, Harsh Kumar, Managing Director and Semiconductor analyst at Stephens & Co, told Benzinga that he sees a “tremendous buying opportunity” in Wednesday’s dive. The expert recommended taking advantage of the weakness with the Market Vectors Semiconductor ETF (NYSEARCA:SMH), which is down 2.45 percent on Wednesday afternoon.
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.