January 22, 2016 4:37 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.
Speaking on
Bloomberg Markets, Tim Biggam of Delta Derivatives shared with the viewers his options strategy for
SolarCity Corp (NASDAQ: SCTY). The stock usually has strong correlation with crude oil, but it broke in December when the stock rallied sharply after the the World Climate Summit in Paris, where the world leaders promoted green energy. Since then the stock dropped significantly along with crude oil, explained Biggam. He thinks that both crude oil and
SolarCity Corp may be close to finding a bottom at current levels.Biggam likes the implied volatility in
SolarCity Corp and he wants to buy the stock at $32 and sell the February 30 call for $5 against it. If the stock trades lower he has a protection until $27. If it stays above $30 at the February expiration, he would have to sell the stock at $30 and he would make a profit of $3 or almost 10 percent in a month.
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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