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 possibility that trade talks with China could be derailed is the biggest risk for tech stocks in the coming months, according to Wedbush.
Analyst Daniel Ives said in a Tuesday note that fundamentals in tech are moving in the right direction, but resolving some key issues with China will be central to how the sector performs.
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Ives’ note came as White House officials were making assurances that trade talks with China are on track for the end of the month, following reports that high-level meetings over a number trade issues had hit a snag. White House Economic Advisor Larry Kudlow on Wednesday said vice ministerial-level talks were still on and that President Donald Trump remains optimistic about trade negotiations.
It also followed a report earlier this week by Bloomberg that China and the United States have made little progress on protection of intellectual property relative to tech companies.
Sticking Points For Tech
Among closely watched issues for the tech industry are rules that force American companies doing business in China to transfer technology to Chinese partners; intellectual property theft; cybersecurity and cybertheft; as well as broader issues around barriers to trade between the two countries, Ives said.
Even if issues that are not directly related to tech end up stalling the talks, it would still could be detrimental to tech companies seeking resolution on technology issues, the analyst said.
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“Inking a broader trade agreement around import imbalance and equally important, in our view, structural changes around forced technology transfer, IP protection, cyber intrusions/theft, services and agriculture will be the focus of tech investors going forward."
Apple
China will be the major focus for those watching Apple Inc. (NASDAQ:AAPL) as it reports earnings next week, Ives said. The company has high exposure to China in terms of product demand and supply chain links — in addition to its Foxconn flagship supplier factory.
“We continue to believe the majority of Apple's demand weakness in the region is related to company-specific pricing hubris and execution issues which must be corrected … rather than macro/China issues,” the analyst said.
Wedbush maintained an Outperform rating on Apple with a $200 price target.
Apple shares were down 0.18 percent at $153.02 at the time of publication Wednesday, while the NASDAQ-100 Technology Sector (NASDAQ:NDXT) index was down 0.57 percent.
Related Links:
What's Next For US And China Trade Talks?
China's GDP Growth In 2018 Was Lowest Since 1990
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.