27% profits every 20 days?
This is what Nic Chahine averages with his options 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.
Jim Cramer spoke on CNBC's Mad Money about Caterpillar Inc. (NYSE: CAT) and its stock performance after earnings. He thinks that there is more downside for the mining and construction equipment maker because its guidance is way too optimistic.
Caterpillar has invested a lot in machines for extracting coal and since the coal companies are struggling the demand for the machines is going down. Heavy machinery for extracting crude oil is also a problem, because it doesn't pay off to use the machinery when crude oil price is so low. The only successful segment for Caterpillar is the construction equipment, but it is only performing well domestically.
Cramer has also answered a couple of phone calls during the show. A viewer asked him about KB Home (NYSE: KBH) and he said that the stock is doing well, but Lennar Corporation (NYSE: LEN) is in a better situation.
Kansas City Southern (NYSE: KSU) is not on his selling list because it is trading too low.
Nobody seems to care at the moment about 3.6 percent yield in General Electric Company (NYSE: GE), but one day they will and the stock will move higher, said Cramer. He thinks that the management is doing everything right.
27% profits every 20 days?
This is what Nic Chahine averages with his options 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.
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