27% profits every 20 days?
This is what Nic Chahine averages with his options 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.
U.S. equity markets were hit hard on Friday with the Dow Jones Industrial Average falling more than 170 points at one point. A late day rally, however, lifted markets significantly off of their worst levels for the session.
The catalyst for the sell-off was once again higher crude oil prices, which caused investors to take money off of the table in equities despite a better than expected non-farm payrolls number.
The Dow Jones Industrial Average closed the session down 88 points at just below 12,170. The widely watched blue-chip index traded in a range between 12,079 and 12,271.
The SPDR S&P 500 ETF (NYSE: SPY) lost 0.75% to $132.47. Volume was very heavy with 277 million SPY shares trading hands compared to a 3-month daily average of just 139 million. This is in line with the trend of a rising market on low volume and heavy volume on sell-offs, which could be a bearish signal.
The PowerShares QQQ Trust ETF (NASDAQ: QQQQ), which tracks the performance of the Nasdaq 100, lost 0.51% to close at $57.95. For the week, the quad Q's gained 0.56%.
Gold outperformed again on Friday. COMEX gold futures closed the session at $1,428.60, a gain of 0.86%. Silver futures added 2.91% to close at a new 31-year high of $35.327. The SPDR Gold Trust ETF jumped 0.91% to $139.35.
Treasuries rose as money came out of risk assets and into U.S. debt. The iShares Barclays 20+ Year Treasury Bond ETF (NYSE: TLT) gained 0.83% to $90.81. The yield on the 10-Year Note fell 6.5 basis points to 3.49%.
The U.S. Dollar continued to fall on Friday, despite the sell off in risk assets - a potentially ominous sign. The PowerShares DB US Dollar Index Bullish ETF (NYSE: UUP), which tracks the performance of the greenback versus a basket of foreign currencies, shed 0.16% to $21.93 and is sitting at an all-time low. The closely watched EUR/USD pair is currently trading at $1.3987.
27% profits every 20 days?
This is what Nic Chahine averages with his options 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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