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.
- Insider buying can be an encouraging signal for potential investors.
- A couple of consumer goods companies saw notable insider buying this past week.
- A beneficial owner increased a stake in an industrial giant as well.
Conventional wisdom says that insiders and 10% owners really only buy shares of a company for one reason -- they believe the stock price will rise and they want to profit from it. So insider buying can be an encouraging signal for potential investors, particularly during periods of uncertainty.
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Here are some notable insider purchases reported in the past week:
LyondellBasell
LyondellBasell Industries NV (NYSE:LYB) saw 10% owner AI Investments Holdings acquiring more shares. At $73.90 to $75.00 apiece, the more than 665,900 shares reportedly acquired last week totaled around $49.66 million. The stake was last listed as more than 5.86 million shares, while the total float was about 258 million.
That same holding company also bought almost 98,600 shares in the prior week, and the CEO purchased almost $500,000 worth in August as well. Shares were trading at $78.05 a share on last look, so the most recent purchases appear well timed. The stock has changed hands as high as $110.69 a share in the past year, but the analysts' consensus price target is $95.82.
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See Also: Insider Buying Vs. Insider Selling: What Numbers Really Matter For Traders?
PVH
PVH Corp. (NYSE:PVH) board chair and chief executive, Emanuel Chirico, and another director have stepped up to the buy window. They picked up nearly 139,600 more shares of this apparel maker at $74.53 to $81.29 per share last week. That totaled more than $10.50 million altogether.
The recent PVH earnings beat did not impress all analysts. But the CEO buying stock helped lift shares to close most recently at $85.39. That is well above the purchase price range above. Shares have traded between $67.41 and $145.25 in the past 52 weeks, and analysts now anticipate the price will go to $100.17.
Coty
Two directors at Coty Inc (NYSE:COTY) purchased 675,000 shares altogether of this beauty products giant last week. At $9.06 to $9.64 a share, the transactions totaled around $6.40 million. Also note that CEO Pierre Laubies picked up about $2.50 million worth of shares the previous week.
The company posted quarterly results at the end of August that were largely in line with expectations. The shares were last seen trading at $10.02, above the purchase price range of the two directors, and in a 52-week range of $5.91 to $14.14. The analysts' consensus price target is $11.21.
Note that the CEOs and other New Media Investment Group Inc (NYSE:NEWM) and Prospect Capital Corporation (NASDAQ:PSEC) and State Street Corp (NYSE:STT) insiders were buying recently as well.
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.