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.
There is downside to Golar LNG Limited’s (NASDAQ:GLNG) stock as the growth story is already priced in and LNG supply growth is expected to slow in the near term, according to Goldman Sachs.
The Analyst
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Goldman Sachs’ Sahar Islam initiated coverage of Golar LNG with a Sell rating and a price target of $12.
The Thesis
LNG supply additions are expected to have peaked in 2018-19 and could decelerate through 2020-24, Islam said in the initiation note.
He added that shipping rates had risen in the recent past, with new LNG supply entering the market, but this positive trend is likely to slow from 2020.
The company’s LNG shipping division, which is estimated to account for more than half the group revenue and around 30% of earnings, is the most volatile part of the business, Islam mentioned.
“Given the volatility in shipping rates and still healthy supply levels, we expect charter rates to decline from here,” the analyst wrote.
Through its various holdings, Golar LNG has exposure to some longer-term contracts. Islam added, however, that their value is already priced in.
Price Action
Shares of Golar LNG were up 2.60% to $13.65 at the time of publishing on Wednesday.
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.