27% profits every 20 days?
This is what Nic Chahine averages with his options 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.
Citron Research's Andrew Left laid out the case for shorting Roku Inc (NASDAQ:ROKU) in late 2017 and debated Needham's Laura Martin, who took the other side of the trade. On Feb. 2, Martin released a new report that warned short sellers to close their position in Roku for six reasons.
The Analyst
Needham's Martin maintains a Buy rating on Roku's stock with an unchanged $50 price target. (See the analyst's track record here.)
The Thesis
Martin named six reasons for closing short Roku positions:
- Roku's fourth-quarter earnings report Feb. 21 could "over-deliver."
- Roku's strategic position within the streaming video space is improving.
- Roku's moats are also improving.
- With a $4-billion market cap, Roku's stock "should be added" to the S&P indices in March and Russell indices in June, resulting in passive money managers "buying for the first time."
- Roku's valuation on a sales, OIBDA, P/E and free cash flow basis makes the stock "inexpensive."
- Expectations for Roku to be acquired by a larger company remain high given the stock's market cap of $4 billion versus $115 billion for Netflix, Inc. (NASDAQ:NFLX).
Price Action
Shares of Roku were trading lower by 1.6 percent Monday morning.
Citi Analyst Sees Roku Falling 45%, Downgrades To Sell
Roku Falls After Morgan Stanley Says Long-Term Earnings Potential Isn't Clear
Photo courtesy of Roku.
27% profits every 20 days?
This is what Nic Chahine averages with his options 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.
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