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 a bullish options strategy in Snap Inc (NYSE:SNAP).
He thinks it would be a good idea to use a risk reversal strategy to initiate a long position in the stock. Nathan wants to sell the July 17 put for $0.85 and buy the July 30 call for $0.85.
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If the stock trades below $17 at the July expiration, which is around 23 percent lower from the closing price on Friday, Nathan is going to have to buy it at $17. If it trades above $30 or approximately 36 percent higher, he's going to make money on the trade.
See Also:
It's No Secret: Retail Investors Love Snapchat
The Road Ahead For Snap: What Does It Mean To Be A Camera Company?
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.