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.
Shares of Micron Technology, Inc. (NASDAQ:MU) are trading near their lowest levels in a year, but CEO Sanjay Mehrotra insists demand the demand for the company's end products "continues to be vibrant."
What Happened
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!
Micron's fiscal first-quarter report sent shares tumbling Wednesday, as the company issued a weaker-than-expected 2019 guidance. Mehrotra told CNBC's Jim Cramer during his 'Mad Money' show that any weakness is near-term in nature. Customer demand will be negatively impacted in Q2 due to an inventory buildup, he said.
Exiting the quarter, supply cutbacks will then "kick in," Mehrotra said.
Why It's Important
The CEO told Cramer that Micron is going through a period where "inventory has to be cleared," and said investors may be overlooking the fact that end market demand drivers "continue to be more diverse than they have ever been in the past."
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.
Recent earnings reports from Micron's enterprise customers and hyperscale cloud companies have been strong, which bodes well for Micron's prospects moving forward, Mehrotra said.
"Memory and storage are very much at the heart of these trends."
What's Next
Looking forward to the bottom half of calendar 2019, industry fundamentals should improve compared to the first half of the year, the CEO told Cramer.
Related Links:
Wall Street Divided On Buying The Micron Dip
Micron Analysts Parse The Q4 Print; Macquarie Says 'We Expect The Downturn To Be Short-Lived'
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.