Kevin Kelly's SPDR S&P 500 ETF Trust Trade - SPDR S&P 500 (ARCA:SPY)

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, Kevin Kelly of Recon Capital Partners suggested that investors should consider a bearish options strategy in SPDR S&P 500 ETF Trust (NYSE: SPY). He thinks that it is a good idea to buy the September 198/181 put spread for $5.30. The break even for the trade is at $192.70 or approximately 3 percent lower from the current price. If the stock drops to $181 or lower, the trade can maximally make $11.70. For the trade to reach its maximal profit, SPDR S&P 500 ETF Trust has to drop at least 8.75 percent.

27% profit every 20 days?

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