August 2, 2015 7:30 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.
On
CNBC's Options Action, Brian Stutland shared his bullish options trade for
Walt Disney Co (NYSE: DIS) ahead of earnings next week. He thinks that the company is going to post good earnings results because it has a great movie line up. It is also in a good position to benefit from cheap oil prices, because consumers have more money in their pockets. Stutland added that
Walt Disney Co had a 40 percent year over year growth and its price to earnings ratio of 25 is not totally ridiculously. Stutland wants to buy the August 28 expiry, 120 strike call for $2.70 and sell the August 28 expiry, 125 strike call for $0.80. The call spread would cost him $1.90 and the trade is going to be profitable if the stock trades above $121.90 at the August 28 expiry. The profit is capped at $3.10.
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.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.