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.
This year has not gotten off to the kind of start that most traders had hoped for, and the market fears that led to volatility in the second half of 2015 have only gotten worse so far in 2016. China’s slowing growth and oil and commodity weakness have continued to drive market fears.
The S&P 500 is already down 6.3 percent in 2016, and some of 2015’s laggards remain the worst stock ideas of year so far. Here are the five worst-performing S&P 500 stocks of 2016.
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5. Chesapeake Energy Corporation (NYSE: CHK)
Chesapeake was the worst performer in the entire S&P 500 in 2015, and investors hoping for a rebound year are off to a disappointing start. After a 76.7 percent decline in 2015, so far Chesapeake is down another 28.6 percent year-to-date.
4. Freeport-McMoRan Inc (NYSE: FCX)
Freeport-McMoRan is another familiar name from 2015 when it comes to underperformance. The stock was the fourth worst-performing stock of 2015 and, at -29.9 percent, is again the fourth biggest loser so far in 2016.
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3. BorgWarner Inc. (NYSE: BWA)
China weakness, the Volkswagen AG emissions scandal and weaker-than-expected commercial vehicle sales have sent BorgWarner shares plummeting so far in 2016. The stock is already down 31.3 percent.
2. United Rentals, Inc. (NYSE: URI)
United Rentals shares plunged as much as 17 percent on the day following its disappointing Q4 earnings report; the stock is down 32.6 percent year-to-date. With a current PE ratio of only 8.0, United may offer the best buying opportunity of any of the stocks on this list.
1. ENSCO PLC (NYSE: ESV)
ENSCO is the early leader out of the gate for worst stock idea of 2016. The offshore driller has been hit hard by slumping oil prices, and the stock is already down an incredible 38.9 percent so far in 2016.
Disclosure: The author holds no position in the stocks mentioned.
Image Credit: Public Domain27% 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.