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.
Friday was a big day for economic data as the latest numbers showed that the U.S. economy grew faster than expected in the fourth quarter and the U.S. consumer is healthier than previously thought.
The fourth-quarter U.S. gross domestic product growth came in at 1.0 percent versus economists' expectations of 0.4 percent. The Commerce Department said that consumer spending increased 0.5 percent in January, while economists were expecting an increase of 0.3 percent.
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Brian Dolan of DriveWealth said, "Solid January personal income and spending data and core PCE all suggest the US consumer is more buoyant than previously thought. We're finally starting to see the effects of lower energy costs and stronger wage growth coming through in actual consumer spending."
"Taken together it's a good start for the year and should go a long way to dispelling fears of a consumer-led slowdown, and we may start to see forecasts start being revised higher. That's the good news," he added.
However, these positive economic data may encourage investors to think about a rate hike, which potentially pressure the stocks.
"The flip side is it puts a Fed rate hike back in play, and that is hitting risk sentiment for the moment. Farther out, I'd suggest it's more risk positive," Dolan noted.
Meanwhile, the market is bracing itself for key economic data to be released next week. The investors would closely watch ISM's manufacturing index for February, which measures overall factory sector trends, while EIA will provide an update on crude oil inventories in the U.S. on Wednesday.
The next Friday will see the release of non-farm payrolls report for February, with economists looking for a 195,000 jobs created and the unemployment rate staying at 4.9 percent.
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.