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) is making a smart move in building its latest Mac Pro desktop computer in Texas as it seeks to mitigate the hit from Chinese tariffs on other products, including the iPhone.
The Analyst
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Wedbush’s Daniel Ives maintained an Outperform rating and $245 price target on Apple.
The Thesis
Apple announced Monday it will build its redesigned Mac Pro in Austin after getting an exemption on key tariffs on circuit boards and graphics cards from U.S. trade officials. It will be the only major Apple computer product assembled in the U.S., but will avoid the possibility of more tariffs on goods imported from China that could come in December.
The iPhone is assembled in China, and the trade war is giving Apple headaches.
Ives said the best case scenario would be that Apple could move a small amount of iPhone production out of China, but it would likely take as much as three years to get just 20% of production out of the country. Apple has been looking at the possibility of moving as much as 7% of iPhone production to India or Vietnam, but even that small amount would likely take more than a year to move.
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While it doesn’t help with iPhone-related tariffs, the move to keep Mac Pro assembly in the U.S., is still significant.
“In our opinion this is an example of smart and strategic balanced production from Apple and should be viewed as a move in good faith,” Ives wrote in a note.
Ives said the China trade war has resulted in a $20-$25 hit to Apple’s stock. But Mac Pro domestic assembly helps.
Price Action
Apple shares traded around $218.75 at publication time.
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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.