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.
It’s been a wild ride so far this year for shareholders of Sarepta Therapeutics Inc (NASDAQ: SRPT). The year got off to a disastrous start back in January when the stock plummeted 55 percent in a single trading day after the FDA released advisory committee briefing documents that were highly critical of the company’s leading muscular dystrophy drug Eteplirsen.
The stock suffered another 66 percent plunge in April when the FDA advisory committee voted against recommending the drug for approval.
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!
The stock quickly recovered much of its losses just days later when the FDA subsequently released a number of questions for Sarepta, including one about the effectiveness of Eteplirsen compared to historical data from boys suffering from Duchenne, but not included in the current trials.
On Wednesday, Sarepta’s announced that it has planned a $37 million public offering. Following the news, shares are trading up 10.9 percent in Thursday’s session.
Public Offerings In Store
Public offerings are usually seen as bad news for stocks, but PreMarket Prep’s Dennis Dick was not surprised by the positive market reaction.
“They’re doing an offering here, raising some cash,” Dick said on Thursday morning’s show. “They obviously think they’re going to get approval [for Eteplirsen] or they wouldn’t be raising this cash.”
He saw Thursday’s positive market reaction coming a mile away.
“I think people are going to look at this as a bullish signal that the company thinks they’re getting approval of the drug or they wouldn’t be raising cash,” Dick concluded.
For more trading ideas and insight on day trading, check out PreMarket Prep LIVE every morning from 8–9:30 a.m. ET here. You can also listen to complete episodes on Soundcloud, iTunes and Stitcher.
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.