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.
RH (NYSE:RH) was trading down 4 percent Wednesday after Citron Research’s announced he sold out of his stake in the stock exactly one year after buying in.
"You have to have some form of experience-type retail [to win].... You'll see it [at Restoration Hardware],” Citron’s Andrew Left told CNBC on Oct. 28, 2016. “Price points at Restoration Hardware are pretty decent when you're looking at high-end furniture."
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1 yr ago Citron long $RH at $30 https://t.co/oKfjCnFJnT Stock up 150+%. NOT comfort owning here with new cap struct. Knowing when to sell
— Citron Research (@CitronResearch) October 25, 2017
Left considers the field relatively safe from Amazon.com, Inc. (NASDAQ:AMZN) and other e-commerce disruptors, according to reports.
The RH Turnaround
RH is trading up 164.6 percent year-to-date after having waned 61.4 percent throughout 2016.
Even before riding a major boost from its second-quarter earnings beat, RH catalyzed its turnaround with inventory initiatives aimed to improve supply chain efficiency. In this way, it has slowly earned the markets’ respect.
“We are increasingly convinced that the threat of demand pull forward from well-above expected outlet sales is potentially overstated,” Deutsche Bank analyst Adam Sindler wrote in a June note. “We remain above consensus on comps and total sales for FY17-FY19.”
Sindler’s bullishness soon echoed throughout the Street. In September, Buckingham Research upgraded the stock to Buy and predicted mid-single-digit revenue growth, while Loop Capital conceded earnings beyond expectations.
RH raised its 2017 sales guidance last quarter to better align with analyst estimates.
Related Link: Restoration Hardware Restored To A Buy Rating At Deutsche
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.