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.
Trading action among some of the hottest names in the gold space on Monday reveals that traders seem to be taking some profits on winning gold trades. The Market Vectors Gold Miners ETF (NYSE: GDX) is down 0.2 percent in early trading on Monday after booking 14.3 percent gains in the past five sessions.
The SPDR Gold Trust (ETF) (NYSE: GLD) is also flat in Monday trading after a 4.5 percent gain in the past week.
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For gold miners, the same pattern seems to be holding true. Newmont Mining Corp (NYSE: NEM) surged more than 12.5 percent in the past week, but is down 1.8 percent on Monday. Barrick Gold Corporation (USA) (NYSE: ABX), which had skyrocketed more than 20 percent in the past week, is down 0.4 percent on Monday. Goldcorp Inc. (USA) (NYSE: GG) is demonstrating the same pattern: up 17.5 percent in a week, but down 1.8 percent on Monday.
Related Link: Poll: Analysts See More Upside For Gold, Silver
For long-term gold bulls, the relatively modest sell-off following such large gains could be seen as a bullish indicator that the strong 2016 gold market still has room to the upside.
In a recent Reuters poll, gold analysts predict an average price of $1,300/oz in 2017. The metal was trading at around $1296/oz on Monday morning.
Disclosure: the author holds no position in the stocks mentioned.
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.