Nic Chahine, an options trader, has an impressive track record of achieving 27% profits every 20 days through buying options, not selling covered calls or spreads. He boasts an 83% win rate, which is higher than most traders in the options market. Chahine’s success lies in capitalizing on oversold stocks in the information technology sector, identifying undervalued companies with potential for short-term gains.
One indicator he uses to determine oversold stocks is the Relative Strength Index (RSI), which compares a stock’s strength on days when prices go up to its strength on days when prices go down. When the RSI falls below 30, the asset is considered oversold. Benzinga Pro provides a list of major oversold players in the technology sector with RSIs near or below 30.
SentinelOne Inc (NYSE:S) reported quarterly losses in May, missing analyst estimates. Despite this, the company showcased a 40% revenue growth and positive free cash flow for the first time. Nutanix Inc (NASDAQ:NTNX) posted strong third-quarter results, reflecting disciplined execution and a robust business model. Snowflake Inc (NYSE:SNOW) reported mixed financial results for the first quarter but emphasized strong core business and the launch of AI products. Five9 Inc (NASDAQ:FIVN) exceeded first-quarter expectations and raised its adjusted EPS guidance for FY24.
Overall, these companies have experienced stock price declines in the past month, presenting potential buying opportunities for investors looking to capitalize on short-term gains. By utilizing tools like Benzinga Pro’s real-time newsfeed, charting tool, and earnings calendar, traders can stay informed and make well-informed decisions in the market.
Nic Chahine’s success in the options market serves as a testament to the potential profitability of buying options, as opposed to traditional strategies like selling covered calls or spreads. To learn more about Chahine’s approach and receive valuable market updates, interested individuals can sign up for Benzinga’s morning update and have a chance to win $500 in stock or cryptocurrency. Remember, Benzinga does not provide investment advice, and all rights are reserved to Benzinga.com.
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