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.
On CNBC's Options Action, Dan Nathan spoke about unusually high options activity in Tesla Motors Inc (NASDAQ:TSLA). He said that the options activity on Tuesday was very short dated and it looks to him that traders are trying to protect their long positions against a pullback.
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!
There was one large trade that caught Nathan's attention during the trading session. A trader bought 6,000 contracts of the January 250 puts for $2.35. The trade breaks even at $247.65 or 2.73 percent lower and it expires at the end of the week. Nathan explained that Tesla Motors has recently jumped above $250, which is now going to act as a support and he sees that as a main reason for the trader to pick $250 strike puts for protection.
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.