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.
Rewards And Risks
Mahaney highlighted four positive aspects of the business, including:
Roku's market share of all streaming devices stands at 20 percent and almost 50 percent of all streaming hours.But on the other hand, the following five risks can't be ignored:
- The competitive landscape is full of tech giants such as Apple Inc. (NASDAQ:AAPL).
- Streaming activity from Netflix, Inc. (NASDAQ:NFLX), Alphabet Inc (NASDAQ:GOOG) (NASDAQ:GOOGL)'s YouTube and other platforms account for 50 percent of streaming hours but won't generate any material revenue for Roku.
- Roku is unlikely to be adjusted EBITDA positive until 2018 and free cash flow positive the year after.
- The majority of Roku's Player revenue is too concentrated and comes from just three retailers.
- The company generates no material revenue outside of the U.S.
Combining both the positives and negatives yields a belief that Roku's stock is "appropriately balanced against investment risks" and reasonably valued at 5x 2018 price to sales.
At time of publication, shares of Roku were down 4.46 percent at $20.90.
Related Links:
Does Roku's Place As Streaming Market Leader Make It A Buy?Roku, Snap The Top Stocks Among Short Sellers________Image Credit: By Intel Free Press - http://www.flickr.com/photos/intelfreepress/6310359565/sizes/o/in/photostream/, CC BY 2.0, via Wikimedia Commons27% 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!