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.
Shares of Alibaba Group Holding Ltd (NYSE: BABA) are set to close above the $100 level on Tuesday for the first time since January 27, 2015.
It’s been a long, tumultuous journey for Alibaba shareholders since the company’s record-setting 2014 IPO, but the path now seems cleared for the Chinese e-commerce giant to once again make a run at its all-time high of $120 from November of 2014.
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This time last year, Alibaba’s stock appeared to be in free-fall and was trading well below its IPO price of $68/share. Fears surrounding the health of the Chinese economy were compounded by concerns over the reliability of Alibaba’s accounting. Earlier this year, investor fears seemed warranted when the SEC announced a probe of Alibaba’s accounting methods. The probe remains ongoing.
Related Link: South China Morning Post: China Is 'In Better Shape Than Many'
Yet despite the fears and controversy, Alibaba has continued to post staggering growth numbers that rival U.S. competitor Amazon.com, Inc. (NASDAQ: AMZN). In addition to its massive lead in Chinese e-commerce market share, Alibaba also has one of the fastest-growing cloud services businesses in the world in recent quarters.
Now that the $100 psychological level has been definitively taken out, there seems to be few technical barriers between $100 and $120. Investors will be watching closely to see if Alibaba’s big 2016 run will culminate with a break-out to new all-time highs or if they're in for a repeat of what happened after the stock’s first move above $100 in late 2014.
Disclosure: The author is long BABA.
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.