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 U.S. trade relationship with China has deteriorated further in recent weeks, and one analyst says Apple, Inc. (NASDAQ:AAPL) investors should brace themselves for the trade war to take a bite out of Apple’s iPhone sales.
The Analyst
Citi analyst Jim Suva reiterated his Buy rating for Apple but lowered his price target from $220 to $205.
The Thesis
Suva cut his China revenue and China iPhone unit sales roughly in half, reducing total iPhone sales estimates by between 7 million and 8 million units in the June and September quarters and 16 million to 17 million units in fiscal 2020. Suva estimates 1 million iPhone units represents about 5 cents in EPS for Apple.
“We are proactively slashing our iPhone unit sales as we believe the US/China trade situation will result in a slowdown of Apple iPhone demand in China as China residents shift their purchasing preference to China national brands,” Suva wrote in the note.
Citi’s latest research suggests Apple’s brand in China has already been weakened from the trade war. Despite the softer outlook, Apple shares are already pricing in much of the trade war concerns after dropping 14.3 percent since May 1. Suve remains optimistic about the long-term outlook for Apple Services, including the upcoming launch of Apple Arcade.
Price Action
Apple's stock traded $178.99 per share at time of publication.
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Trade War Update: Trump Says Huawei Blacklist Negotiable, G20 Meeting In Jeopardy
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.
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