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.
Among the 30 stocks in the Dow Jones Industrial Average, Verizon Communications Inc. (NYSE:VZ) isn't necessarily the most exciting name, but that might not matter for investors who own the stock as it reaches new highs.
The Analyst
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Matt Maley of Miller Tabak discussed Verizon during on CNBC's "Trading Nation" segment Wednesday.
The Thesis
Verizon stock has been stuck in the $45 to $55 per share range since 2013, but is finally showing signs of a breakout, Maley said. Up nearly 20 percent in the past three months alone, Verizon shares are testing a key resistance level , he said. If the telecom stock breaks above its 2017 and 2018 high of $55, it can test the 2016 all-time high of around $56.50. A break above $57 per share could result in momentum coming into the stock, Maley said.
Verizon's stock is well-positioned to move higher, as it is seen as a defensive stock, Maley said. With big money shifting away from names like Facebook, Inc. (NASDAQ:FB) and Netflix, Inc. (NASDAQ:NFLX), investors are looking for momentum plays in the market, the equity strategist siad.
Encouragingly, Verizon's stock is backed by a
">dividend yield of more than 4 percent — which Facebook and Netflix can't match.
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Verizon, along with other defensive names across utilities, consumer staples and health care, has been a market leader in recent months, Maley said.
Defensive groups as a whole are outperforming the broader market since spring, which makes Verizon's stock attractive no matter how investors view it, Maley said.
Price Action
Verizon shares were down 1.4 percent at $54.14 at the close Wednesday.
Related Links:
'Convergence' Is Key: Credit Suisse Weighs In On The Telecom And Media Sector
Goldman Sachs Updates Its Telecom Outlook: 'The Pipes Are Not Broken'
Public domain photo via Wikimedia.
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.