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.
Around Midday on Thursday Dyax Corp (NASDAQ: DYAX) shares soared over 10% and Juno Therapeutics (NASDAQ: JUNO) rose ~8 percent ahead of reports that NYSE Arca Biotechnology Index (NYSE: BTK) rebalanced its portfolio on Wednesday. Dyax and Juno Therapeutics will replace PDL Bioscience (NASDAQ: PDLI) and Exact Science (NASDAQ: EXAS) , both stocks fell ~3 percent before reports could confirm the rebalancing.
Action in all 4 biotech stocks was compounded as First Trust's NYSE Arca Biotech Index Fund (NYSE: FBT) would also be rebalancing. According to a note received by Benzinga produced by Cowen Group, the First Trust fund reportedly made the following transactions:
- Added 3,776,600 shares of Dyax Corp
Added 1,972,00 shares of Juno Therapeutics - Deleted 20,076,800 shares of PDL BioPharma
- Deleted 4,559,00 shares of Exact Sciences
Just after 1:00PM EDT First Trust's NYSE Arca Biotech Index Fund traded up almost 2.30 percent.
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.
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