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.
Despite a huge multi-year runs from semiconductor stocks, a new report from Bank of America revealed that a handful of popular semiconductor stocks are still dramatically under-owned among active fund managers. The latest findings are based on Bank of America’s Equity Strategy data.
Bank of America analyst Vivek Arya said active managers have dialed back their relative weighing in the tech sector from peak levels of 1.25 times in August 2017 to only 1.18 times in early March.
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“The decline was largely driven by Semis, which fell to its lowest relative weight in last 20 months to 1.12x vs peak of 1.46x in Mar’17,” Arya said.
Here’s a rundown of some of the key findings in the report.
Top Names
- Nvidia Corporation (NASDAQ:NVDA) remains under-owned, with just 26 percent of fund managers holding the stock with an average weighting of 0.94 times. Weighting has declined by 13 percent in the past three months.
- Intel Corporation (NASDAQ:INTC) is also underweighted by fund managers, with only 27.7 percent ownership at an average weighing of 0.83 times. Intel’s weighting bottomed at just 0.3 times back in 2013. While it has steadily increased since that time, it remains well below its industry peers.
- Advanced Micro Devices, Inc. (NASDAQ:AMD) is barely owned by active managers, with only 2.7 percent of funds holding the stock. AMD’s weighting is also a miniscule 0.07 times and falling.
- Microchip Technology Inc. (NASDAQ:MCHP) ownership is down 6 percent in the most recent quarter and stands at only 9 percent with an average weighting of 0.6 times.
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Meanwhile, Qorvo Inc (NASDAQ:QRVO) ownership remains extremely concentrated with only 10 owners accounting for 61 percent of outstanding shares.
Ratings And Targets
Bank of America maintains the following ratings and targets on the stocks mentioned:
- AMD: Buy rating, $18 target.
- Intel: Buy rating, $52 target.
- Microchip: Buy rating, $110 target.
- Nvidia: Buy rating, $300 target.
- Qorvo: Neutral rating, $85 target.
Related Links:
A Look At AMD's Options Activity, Short Interest
Semi Execs Present Optimistic View At Morgan Stanley's TMT Conference
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.