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.
- Wells Fargo & Co (NYSE: WFC) and Bank of America Corp (NYSE: BAC) are scheduled to announce third quarter financial results on Wednesday, before the market opens.
- Benzinga had the chance to chat with TD Ameritrade’s Chief Strategist JJ Kinahan.
- The investor shared some thoughts regarding options activity in these stocks.
Bank of America
ENTER TO WIN $500 IN STOCK OR CRYPTO
Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!
Kinahan first went into Bank of America, which shows “nothing special” volatility wise. “This is a stock that, in terms of pure dollars, it has a tough time moving a lot,” he explained. “This is a stock that rarely makes gigantic moves one way or the other.”
Related Link: TD Ameritrade's JJ Kinahan On Options Activity At Intel, JPMorgan
The strategist added that the market is currently pricing in a move in the stock of approximately 3 percent.
Wells Fargo
“The interesting thing about Wells Fargo is always what they see for interest rates and how that will affect the mortgage business, because they are such a big mortgage provider,” he assured, adding that this call should also bring some interesting comments about the recently struck deal with General Electric Company (NYSE: GE).
In this case, the market is pricing in a 1.5 percent move.
Regarding options activity, the company saw plenty of buyers of the $52.50 calls and puts over the past week, and this continued on Tuesday for the monthly options, Kinahan said.
Disclosure: Javier Hasse holds no positions in any of the securities mentioned above.
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.