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.
If the past is any indication, now is the time of year when Under Armour Inc (NYSE: UA) starts to shine. In today’s CNBC Fast Money Final Trade, Steve Grasso pointed out that Under Armour historically averages a 6 percent gain in June and an 11 percent gain in July.
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Benzinga took a closer look at Under Armour’s summertime trading.
Since the beginning of June 2011, Under Armour has been one of the hottest stocks in the market, delivering an overall return of 339.1 percent versus the 60.9 percent return of the SPDR S&P 500 ETF Trust (NYSE: SPY) and the impressive 167.1 percent return of rival Nike Inc (NYSE: NKE).
However, if Under Armour shareholders are particularly fond of the early summer months, there’s good reason. In the past five years, the SPY ETF has averaged a 1.5 percent gain during the months of June and July. Nike has delivered an impressive average gain of 2.5 percent during those two months.
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But Under Armour has produced an incredible average two-month gain of 17.6 percent in June and July over the past five years. In fact, 2013 was the only year that Under Armour hasn’t delivered double-digit gains in June and July, and it still produced a strong 8.7 percent return that year.
With the Summer Olympics likely to boost athletic apparel sales this year, Under Armour’ stock could be in for another hot summer in 2016.
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.