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.
The imminent launch of "Call of Duty: Black Ops 4" brings another contender to the exceedingly popular battle royale gaming space.
In light of the recent beta release, "Call of Duty" creator Activision Blizzard, Inc. (NASDAQ:ATVI) has received abundant favorable reviews and strong game feedback, putting a damper on the buzz surrounding "Fortnite" and "PlayerUnknown’s BattleGrounds," or PUBG.
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!
What Happened
Funko Inc. (NASDAQ:FNKO), which produces popular action figures, recently unveiled a product line based on characters from "Fortnite" to be sold this holiday season. Following the release of Activision Blizzard’s beta, Funko stock plunged 18 percent. As of Wednesday afternoon, shares were down 4.35 percent at $24.41. Since then, industry experts have scrambled to determine the impetus.
Why It’s Important
One theory on the share drop surrounds the reverberation from the much anticipated "Call of Duty" game.
Given the extraordinary success of battle royale games as of late, it would make sense that young games like "Fortnite" and PUBG would struggle when faced against a franchise juggernaut with the tenacity of "Black Ops."
Want Private Access to Benzinga Analyst?
Check out the latest strategies our team of experts are using every week so that you can always adapt to the market like the pros!—Get FULL Access to This Week's Webinar Here.
Another theory was pitched by The Motley Fool immediately following the drop. The speculation referred to Funko data that indicated shares have risen over 300 percent since the company's initial public offering. The question lies in whether Funko is worth the price surge.
The company lacked free cash flow in 2017 and has earned a mere $800,000 in the last year, according to the Motley Fool.
Despite profitable quarters in 2018, The Motley Fool considers the overall stock valuation to be ambitious.
What’s Next
The holiday release of "Fornite" products as well as the success of "Call of Duty" in October will fill in some blanks. Will "Call of Duty" reign as the most popular battle royale game, making "Fortnite" and related merchandise obsolete?
Related Links:
2 Giants Join Forces: Funko Announces Partnership With Epic Games
Stifel: Funko's Q1 Impresses Despite Toys R Us Liquidation
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.