March 8, 2016 6:51 AM | 1 min read
27% profits every 20 days?
This is what Nic Chahine averages with his options 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 suggested on
Bloomberg Markets that investors should consider taking a long position in
iShares MSCI Germany Index Fund (ETF) (NYSE: EWG) ahead of the ECB meeting. He wants to use options and buy the April 25 calls for $0.45.Strugger also spoke about
Diamond Resorts International Inc (NYSE: DRII). The stock is interesting for him because it might go private or become a takeover target. He thinks that there is going to be an announcement until August. If the deal happens or the company goes private, the stock should be valued between $32 to $35, thinks Strugger. To make a bullish bet, he wants to buy the August 25 call and sell two August 35 calls. He would have to pay a net premium of $2 for the trade. The break even for the trade is at $27, but the profit is capped at $35 and it can maximally reach $8. Above $35, profit starts to decrease and it becomes negative above $43.
27% profits every 20 days?
This is what Nic Chahine averages with his options 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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