27% profits every 20 days?
This is what Nic Chahine averages with his options 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.
Innovative Industrial Properties Inc (NYSE:IIPR), the only NYSE-listed real estate company that focuses on the regulated U.S. cannabis industry, is "uniquely positioned" for future growth in the sector, according to BTIG.
The Analyst
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Thomas Catherwood maintained a Buy rating on Innovative Industrial Properties with a price target lifted from $101 to $148.
The Thesis
Innovative Industrial signed a new lease agreement with cannabis company Green Peak that included $18 million of growth capital, Catherwood said in a Thursday note. (See his track record here.)
The REIT invested $13 million in an initial 56,000-square-foot facility in 2018, and that agreement included a provision for Innovative Industrial to fund additional facilities if certain EBITDA milestones are reached, the analyst said.
This implies the outlook for Green Peak is better than when the initial deal was inked, he said.
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In essence, Innovative Industrial's agreement with Green Peak boils down to the following, Catherwood said.
"When you expand over the next seven years, we have the right to be your landlord, if we so choose."
If a similar arrangement was made in another sector, such as high-growth life sciences, investors would view the deal as "incredibly lucrative," the analyst said.
Price Action
Shares of Innovative Industrial Properties hit a new 52-week high of $137.78 Thursday morning and were up 7.62% at $134.71 at the close Thursday.
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Cannabis REIT Innovative Industrial Properties Raises Dividend By 33%
27% profits every 20 days?
This is what Nic Chahine averages with his options 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.