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.
Sirius XM Holdings Inc (NASDAQ:SIRI) is trading at 12-year highs, and one sell-side analyst projects another 9 percent in upside for the satellite radio stock.
The Rating
ENTER TO WIN $500 IN STOCK OR CRYPTO
Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!
Buckingham Research Group analyst Matthew Harrigan downgraded Sirius from Buy to Neutral and raised the price target from $7 to $7.25.
The Thesis
The rating is justified in part by a $6.7-billion gap in the current market value of shares repurchased since 2013, Harrigan said in a Monday note.
“The ratings downgrade is not premised on any perceived immediate deterioration in fundamentals, but rather price and the availability of Liberty SiriusXM Group Series A (NASDAQ:LSXMA) as a near pure-play SiriusXM investment alternative at a remarkable 33-percent discount,” the analyst said.
FREE REPORT: How To Learn Options Trading Fast
In this special report, you will learn the four best strategies for trading options, how to stay safe as a complete beginner, a 411% trade case study, PLUS how to access two new potential winning options trades starting today.Claim Your Free Report Here.
The stock is seen to be riding positive company comparisons against Spotify Technology SA (NYSE:SPOT), and while royalty pressure from the progressing Music Modernization Act could add a headwind, spectrum ownership and read-across from Pandora Media Inc (NYSE:P) performance could yield upside, Harrigan said.
Buckingham forecast a 3.3-percent discount cash-flow growth rate after 2022, which represents a 30-percent premium to media peers.
Recent updates to the iOS and Android apps that improved the out-of-vehicle streaming experience are expected to compound impending investments in Howard Stern video and the integration of 360L hybrid radios in new car models, Harrigan said.
Price Action
Sirius XM shares were up 0.22 percent at $6.68 at the time of publication Monday.
Related Links:
Could SiriusXM Still Buy Pandora?
How Pandora Premium Access Is Faring As Competition Intensifies
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.