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.
Apple Inc. (NASDAQ:AAPL) expansion into streaming video could have a "material negative impact" on earnings.
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!
Goldman Sachs analyst Rod Hall maintains a Neutral rating on Apple with a price target lowered from $187 to $165.
The Thesis
Apple is marketing its new streaming video service Apple TV+ with a free one-year trial. While Apple's service costs $4.99 a month, the company will account for the trial as a $60 discount to a combined hardware and services bundle, CNBC quoted Hall as saying in a note.
Hall said Apple's accounting method shifts revenue from hardware to Services even if customers don't perceive themselves as paying for the streaming video service. This could give an advantage to Apple's services revenue line, but it's "equally inconvenient" for hardware average selling prices and margins high sales quarters, especially the December-ending period.
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.
Apple's accounting method is in no way improper and the company has taken a "very similar approach" in the past. Nevertheless, the math behind the accounting method points to a potential negative 7% impact on fiscal first quarter and full year 2020 average selling prices.
Hall's revised price target is now the lowest forecast of all major Wall Street banks and the fifth lowest of all analysts who cover Apple's stock, according to TipRanks.
Price Action
Shares of Apple were trading lower by 1.2% Friday at $220.30.
Related Links:
Analyst: Comparing Apple TV+ With Netflix Isn't Fair
Option Traders Making Large Bullish Bets On Apple Following iPhone 11 Event
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.