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.
Apple Inc. (NASDAQ:AAPL) introduced a buy-one-get-one-free promotion earlier this year for its iPhone devices, including the high-end iPhone X. The promotions have had a "limited impact" on lowering iPhone inventories, according to KeyBanc Capital Markets.
The Analyst
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KeyBanc Capital Markets' John Vinh.
The Thesis
Apple's iPhone inventories declined month-over-month in February, but days of inventory remained flat month-over-month at around five days, according to a KeyBanc carrier survey.
Stores that sell iPhones found that sell-through of the iPhone 8 was "slightly better than expected, but sell-through for the iPhone X was "disappointing," Vinh said.
Stores cited the high cost of the iPhone X, which retails for $300 more than the iPhone 8, as a headwind and also said they saw a "significant reduction" in the number of iPhone X shipments received, the analyst said.
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Apple could face a "moderate risk" of an inventory correction, as iPhone inventories remain elevated versus prior cycles but are still under the targeted six-to-10 day range, according to KeyBanc.
Even a moderate risk implies "limited near-term catalysts" for the Apple supply chain, Vinh said. But over the longer term, the analyst continues to recommend investors own three companies in Apple's supply chain:
- Broadcom Ltd (NASDAQ:AVGO)
- Skyworks Solutions Inc (NASDAQ:SWKS)
- Synaptics, Incorporated (NASDAQ:SYN)
Price Action
Apple shares were up 1.72 percent at the close Friday at $179.98.
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Photo courtesy of Apple.
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.