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.
Kraft Heinz Co (NASDAQ:KHC) traded to its lowest levels ever on Thursday and two market pros are in no hurry to buy the stock.
Market Technician's Take
Kraft Heinz's stock chart since August 2016 shows a pattern of establishing a "series of lower lows and lower highs," Piper Jaffray chief market technician Craig Johnson said Thursday on CNBC's "Trading Nation." Before investors jump in and buy the stock, the chart needs to first establish a patter of at the very least trading sideways.
Kraft Heinz's stock needs to turn "quiet" to the point where "nobody cares" at which point it will be put in a "bottom fishing category," he said.
"More time, and likely a lower price point is going to be there for this stock, before I'd be more interested," he said.
Chief Investment Strategist's Take
Value investors may take one look at Kraft Heinz and conclude they're buying a "historically great company" at a large discount that offers an attractive dividend, said Nancy Tengler, chief investment strategist at Tengler Asset Management. However, Kraft slashed its dividend by 36% earlier this year and chances are when there is one dividend reduction it could be followed by another.
Meanwhile, growth managers are "running for the exits" and investors rushing to buy the stock now are both "early" and "wrong" in doing so, she said.
Kraft Heinz's stock closed Thursday at $28.22 per share and traded lower by another 2.3% Friday morning.
Related Links:
This Analyst Thinks It Could Get Worse For Kraft Heinz
Morgan Stanley Upgrades Kraft Heinz, Boosts Stock
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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