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.
Game developer Zynga Inc (NASDAQ:ZNGA) announced Tuesday its $100-million acquisition of Peak Games’ card game studio, which is said to be accretive to near-term margins.
Peak’s popular “Spades” and “Gin Rummy” will supplement Zynga’s growing “Poker” and “Solitaire” franchises and help establish the portfolio as the largest in the world, but financial impact is yet unclear.
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“They said ‘millions’ of users but didn’t specify how many millions,” Wedbush analyst Michael Pachter told Benzinga. “I assume revenue is $25 million to $30 million and that it’s profitable.”
Zynga’s mobile games account for 87 percent of total revenue and bookings, the latter of which saw a 15-percent year-over-year increase this quarter. The boost contributed to an $18.1 million profit against a $41.7 million loss in the same quarter last year.
The earnings report wasn’t all positive, though. The firm reported a one-cent bottom-line miss and sequentially flat daily and monthly active users.
“We modeled DAU flat and MAU up 500,000,” Pachter said. “That’s close enough for me. They launched no new franchises, so hard to see how they would grow during the quarter. They should grow with the Peak card games next quarter and possibly with Words 2.”
Shares of Zynga traded Wednesday morning at $4.03, up 9.5 percent.
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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.