December 1, 2015 6:18 AM | 1 min read
20-Year Pro Trader Reveals His "MoneyLine"
Ditch your indicators and use the "MoneyLine". A simple line tells you when to buy and sell without the guesswork. It’s a line on a chart that’s helped Nic Chahine win 83% of his options buys. Here's how he does it.
, Dan Nathan spoke about unusually high options activity in
Zoetis Inc (NYSE: ZTS). The options trading volume was 40 times higher than the average daily options trading volume and there was a huge trade in the January 2017, 35 strike puts. Nathan explained that the puts looked like they were sold to open, which makes the trade bullish. Somebody sold 84,000 contracts of the January 2017, 35 strike puts for $1.25 and collected a premium of $10.5 million. The break even for the trade is at $33.75 or approximately 28 percent lower from the closing price on Monday. If
Zoetis Inc drops below $35 at the January 2017 expiration the trader is going to have to buy the stock at $35. Nathan sees this trade as a leveraged play for a existing long position.
20-Year Pro Trader Reveals His "MoneyLine"
Ditch your indicators and use the "MoneyLine". A simple line tells you when to buy and sell without the guesswork. It’s a line on a chart that’s helped Nic Chahine win 83% of his options buys. Here's how he does it.
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