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.
Netflix, Inc. (NASDAQ:NFLX) is scheduled to report its fourth quarter earnings Jan. 22, which may convince some of Wall Street's neutral or bearish analysts into becoming positive.
The Analyst
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Baird Equity Research's William Power maintains a Neutral rating on Netflix's stock with an unchanged $190 price target.
The Thesis
Netflix is likely to report solid U.S. subscriber growth metrics and strong growth in the international segment, Power said in a note. At the same time, investors need to be mindful of the competitive landscape in the streaming video market on top of Netflix's "significant ongoing" cash burn.
Here is a summary of what the analyst is modeling for Netflix's earnings report:
- U.S. penetration rose 200 basis points to 47.3 percent;
- Netflix likely added 1.25 million total U.S. net additions which would mark a decrease from 1.93 million a year ago;
- Netflix is likely to report 5.05 million total net additions in the international market versus 5.1 million a year ago;
- 2017's price increase is likely to have a "muted impact" but could increase churn and impact margins; and
- Netflix is projected to report total Q4 revenue of $3.3 billion, EPS of 41 cents, contribution margin of 34.4 percent (down from 38.2 percent last year).
Price Action
Shares of Netflix gained 2 percent Wednesday and hit a new all-time high of $205.05.
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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.