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.
Want to get exposure to a retail stock that isn't plagued by the usual woes faced by brick-and-mortar stores? Keep an eye on fashion e-tailer Revolve Group.
The IPO Terms
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Revolve Group proposes to offer 11.765 million Class A shares in an IPO, with the company offering 2.941 million shares and selling shareholders the remaining 8.24 million shares, according to the amended S-1/A filing on May 28.
The company expects to price the IPO between $16 and $18.
The shares have been approved for listing on the NYSE under the ticker symbol RVLV.
Revolve Group qualifies as an "emerging growth company" as defined in the JOBS Act of 2012, and therefore are exempt from some stringent disclosure rules that are associated with normal listed companies.
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Morgan Stanley, Credit Suisse and Bank of America Merrill Lynch are the lead underwriters for the IPO.
The Company
California-based Revolve Group, founded in 2003, is the next-gen fashion retailer for millennial and Gen-Z customers, boasting of a vast yet curated offering of over 45,000 apparel, footwear, accessories and beauty styles. The company's dynamic platform connects millions of consumers, thousands of global fashion influencers and more than 500 emerging, established and owned brands.
It has a proprietary technology platform focused on developing sophisticated and highly automated inventory management, pricing, and trend-forecasting algorithms.
In 2018, the company had an average of 9.4 million unique visitors per month, delivered about 79 percent of its sale at full price, retained 89 percent of sales from prior year's customers, had an average order value of $279 and delivered gross margin of 53.2 percent.
The Finances
Revolve Group reported net sales of $498.7 million in 2018, representing 24.8 percent year-over-year growth, and net income climbed 512.8 percent to $30.6 million.
For the three months ended March 2019, the company reported net sales of $137.3 million and net income of $5 million.
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.