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.
A sector rotation is common, particularly in times of market volatility. However, picking the timing and the right sector is always a concern for investors.
"There's always money coming out of something, going into something else," Joel Elconin, co-host of Benzinga's PreMarket Prep, said during Tuesday's daily show.
ENTER TO WIN $500 IN STOCK OR CRYPTO
Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!
Dennis Dick, the show's co-host, jumped in and pointed that shares of Gilead Sciences, Inc. (NASDAQ: GILD) "got killed" following its earnings release, and Biogen Inc (NASDAQ: BIIB) has seen its shares "struggle for a while."
Dick continued that there is a major overhang is the U.S. presidential election and delved into what affect a potential Clinton presidency would have on the entire drug sector, specifically regarding any new drug pricing policies.
"There is value here [in the biotech sector]," Dick said. "These companies make money."
As an example, Dick highlighted Pfizer Inc. (NYSE: PFE) as a standout as the company is expected to see $53 billion in revenue this year and offers a healthy dividend yield of 3.75 percent. Meanwhile, Gilead's stock boasts a P/E multiple of approximately 8 to 9.
Dick continued that investors who buy biotech stocks at current levels will be "happy" in 5 years from now. He did however caution there might be "short-term pain" given the U.S. election.
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.