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.
Marijuana stocks have experienced extreme volatility in recent weeks ahead of the Oct. 17 launch of the adult-use marijuana market in Canada. On Friday, Canopy Growth Corp (NYSE:CGC) CEO Bruce Linton joined CNBC to discuss the growing global marijuana industry and the impact of Canadian legalization.
Beer Disruption
Earlier this month, Constellation Brands, Inc. (NYSE:STZ) announced it would be making an additional $4 billion investment in Canopy as beer companies seek cannabis partners to potentially develop cannabis beverages. The news sent Canopy and other marijuana stocks soaring, and Linton said the entire cannabis group is rerating on the prospect of further beverage partnerships.
“It would be a pretty terrible job to be the CEO of a beer or spirits company and not have a cannabis strategy,” Linton said.
While the recent cannabis-related news has lifted most of the major stocks in the group, Linton said there will ultimately be only one or two companies which will rise to the top of the space.
“There is going to be a dominant leading company, and we are not that yet,” Linton said.
U.S. Off Limits
Linton said the Constellation cash is like rocket fuel for Canopy, which is working to expand its international business in 11 different countries where cannabis is federally legal. Canopy currently isn't operating in the U.S. market, where marijuana is still banned on a federal level.
“We have tried to lead the process of exiting [U.S.] prohibition so that we can be very disruptive to pharmaceutical, because there are a lot of ingredients that have not been harnessed under the last 95 years of prohibition,” Linton said.
Price Action
After a steep sell-off Thursday, U.S.-listed marijuana stocks reacted positively to the Linton interview on Friday:
- Canopy Growth was up 2 percent.
- Cronos Group Inc (NASDAQ:CRON) was up 8 percent.
- Tilray Inc (NASDAQ:TLRY) was up 9 percent.
Related Links:
Cronos Group Plummets After Citron Calls It The 'Dark Side Of Cannabis'
Tilray's First Earnings Print Gives Cannabis Stocks Another Boost
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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