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.
LendingClub Corporation (NYSE: LC) has had quite a tumultuous year. Just since May, the company and the media have revealed to investors:
- Its CEO and founder was complicit in the compromising of internal controls
- Its internal controls were ineffective as of December 31, 2015
- It received a subpoena from the Dept. of Justice
- Goldman Sachs lowered its loan origination growth estimates by 9 percent
- A report on loan sales had to be corrected when the initial report didn’t fully disclose the amount of loans purchased by the company itself
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In an article Tuesday, the Wall Street Journal examined two new revelations: that the former CEO and his family bought loans in the early days of the company to artificially boost volumes, and that more recently, internal funds were being improperly valued.
Investors’ reaction to the internal fund misvaluation was dramatic; the company has now restricted redemptions from the fund after the amount of redemption requests became equal to 58 percent of the fund’s assets.
The shares of LendingClub were higher Tuesday, though, on news of a new CEO, cost cutting measures, and reports that the CEO was still expecting the company would see $40 million in loans on its balance sheet by the end of June.
Shares spiked even further after hours as there were reports that Stone Ridge is buying $1 billion worth of LendingClub loans. The stock price sat at $4.65 after hours Tuesday.
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.