Jim Strugger's Twitter Inc Hedge

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.

Jim Strugger of MKM Holdings shared with the viewers of Bloomberg Markets a hedging strategy for Twitter Inc (NYSE: TWTR). The company is going to report earnings on February 10 and Strugger thinks that traders who have a long stock position should consider ways to contain the risk. He believes that it would be a good idea to sell the March 20 call and buy the March 12 put for just about even. If Twitter Inc trades lower, the long stock position would be protected below $12. If it trades above $20 at the March expiration, the trader would have to sell the stock for $20 or 34 percent higher from the closing price on Monday.

27% profit every 20 days?

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