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.
Expected higher energy pricing in most regions in coming years led Goldman Sachs to boost target prices on Exelon Corporation (NYSE:EXC) and Public Service Enterprise Group Inc. (NYSE:PEG) — while staying cautious on the sector as a whole.
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!
Michael Lapides upgraded Exelon from Neutral to Buy and boosted the target price from $48 to $52.
Lapides remained Neutral on on Public Service Enterprise Group and raised the target price from $56 to $59.
The Thesis
Goldman is upgrading Exelon largely as a result of updated pricing forecasts, Lapides said, adding that he expects prices to increase in 2020 and 2021 across most regions. (See Lapides' track record here.)
The company is “an outperformer in a group that we remain cautious on overall," the analyst said.
Exelon
Several catalysts could play out for Exelon over the coming months, including resolution of a long-sought subsidy for nuclear power plants in Illinois and the potential for rate-making changes in Illinois, Lapides said.
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.
Exelon’s 8-percent total return makes it one of Goldman’s top stocks in the utilities coverage area, the analyst said.
Public Service Enterprise Group
The outlook for PEG is less bullish — even with higher price expectations — because of a difference in markets, Lapides sqaid.
Goldman is increasing earnings estimates and the target price for the company, but sees a total return of just 1 percent, in-line with peers, the analyst said.
Price Action
Exelon shares were up more than 1 percent at $50.76 at the time of publication Friday, while Public Service Enterprise shares were up 0.94 percent at $60.89.
Related Links:
Wells Fargo Turns Bullish On Exelon, Cites Legislative Tailwinds For Nuclear Energy
Some Traders Are Preparing For An Energy Pullback
Photo by Bill Tracey/Wikimedia.
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.