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.
Todd Gordon of TradingAnalysis.com spoke on CNBC's Trading Nation about a bullish options strategy in Facebook Inc (NASDAQ:FB). He said that the stock was very strong in 2017, but recently it has started to hesitate a little bit and he expects it to pullback to its technical support, which should be around $140 or $141 level.
Gordon added that implied volatility in the name has started to increase as we approach earnings report. When the stock was trading at $141.35, Gordon suggested traders should consider a purchase of the April 141/145 call spread for $1.73. The trade breaks even at $142.73 or 0.32 percent above the closing price on Monday. If the stock jumps to $145 or higher at the April expiration, the trade is going to reach its maximal profit of $2.27. If the premium drops to $0.85, Gordon is going to close the position.
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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