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 hedging strategy in SPDR S&P 500 ETF Trust (NYSE:SPY). He named the debt ceiling vote, the French election and the Fed's activity as possible catalysts that could push the market lower and since the implied volatility is low, he wants to buy options to protect his long position from a potential decline.
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Nathan wants to buy the July 230/205 put spread for $4. The trade breaks even at $226 or 3.26 percent lower from the closing price on Monday. If the stock drops 12.25 percent to $205 or lower, the trade is going to reach its maximal profit of $21.
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.