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," Tony Zhang said there is a potential downside in Okta Inc (NASDAQ:OKTA).
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.
ENTER TO WIN $500 IN STOCK OR CRYPTO
Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!
The stock is trading in a very wide range between $210 and $290, it has underperformed its sector and recently it recorded some lower highs. It also had a strong last week, which Zhang sees as an opportunity to look for some short exposure. He expects the stock to test its support at $210.
To make a bearish bet, Zhang wants to buy the August $220/$190 put spread for a total cost of $8.60. The trade breaks even at $211.40 or 6.62% below the closing price on Friday. If the stock drops at least 16%, to $190 or lower, the trade is going to reach its maximal profit of $21.40.