Alan Knuckman's Petrobras Trade


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.


Alan Knuckman of Bulls-Eye Option said on Bloomberg Markets that he would buy Petroleo Brasileiro SA Petrobras (ADR)(NYSE:PBR), because it could benefit from the strength in crude oil.


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.


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He added that crude oil bounces back after each push lower, which makes him believe it could make a move toward $60. Knuckman thinks a move higher in crude oil could push Petrobras toward $16.

He wants to exploit a potential move higher by purchasing the January 2018, 7 strike call for $4. The trade breaks even at $11 or 5.57 percent above the current market price and if the stock moves to $16, Knuckman would have a return of more than 100 percent.

Posted In: OptionsMarketsMediaAlan KnuckmanBloomberg Markets