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 shared with the viewers of CNBC's "Trading Nation" his bullish options trade in SPDR S&P 500 ETF Trust (NYSE:SPY).
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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Gordon believes that SPDR S&P 500 ETF Trust is going to trade higher to $250 and he wants to use options to make a bullish bet. He wants to buy the August 243/248 call spread for $2.60.
The trade breaks even at $245.60 or 0.48 percent above the current stock price. It can maximally make a profit of $2.40. If the premium drops to $1.30, Gordon is going to close the position.