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.
Facebook, Inc. (NASDAQ:FB) CEO Mark Zuckerberg's vision for the future of the social media platform prompted BofA to turn less bullish on the stock.
The Analyst
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!
Bank of America's Justin Post maintains a Buy rating on Facebook with a price target lowered from $205 to $187.
The Thesis
Zuckerberg explained in a public post his vision of focusing more on a privacy-focused social media platform along with an encrypted messaging network, Post said in a research report. Following the announcement two senior Facebook executives, Chief Product Officer Chris Cox and head of WhatsApp Chris Daniels quit the company.
POst said the timing of the departures, even if Cox has been planning to leave for some time, "raises some concern" around internal conversations and thoughts related to Zuckerberg's new vision.
FREE REPORT: How To Learn Options Trading Fast
In this special report, you will learn the four best strategies for trading options, how to stay safe as a complete beginner, a 411% trade case study, PLUS how to access two new potential winning options trades starting today.Claim Your Free Report Here.
From a business perspective a new vision of Facebook's platform "could raise questions" about its financial outlook. Specifically, private messaging platforms are monetized at a lower rate compared to the core news feed which may see declining usage in the future.
For the time being the analyst remains "constructive" on Facebook's stock as activity within the core news feed is showing signs of stabilization after troughing in the summer. But a more cautious stance on the stock could be warranted if a deterioration in usage data is observed in the future.
Price Action
Analysts at Needham downgraded Facebook's stock to Hold on Monday. Shares were trading lower by 1.2 percent at $164.01 ahead of Monday's market open.
Related Links:
Report: Facebook Under Criminal Investigation
Facebook Surges After Big Q4 Earnings Beat
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.