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.
Investors who owned stocks in the 2010s generally experienced some big gains. In fact, the SPDR S&P 500 (NYSE:SPY) total return for the decade was 250.5%. But there’s no question some big-name stocks did much better than others along the way.
Walmart’s Difficult Decade
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One of the market laggards of the past decade was retail giant Walmart Inc (NYSE:WMT).
The 2010s were a transformative decade for Walmart. The company was forced to invest heavily in an aggressive transition to online sales to keep pace with e-commerce leader Amazon.com, Inc. (NASDAQ:AMZN).
Walmart started the decade as almost an exclusively brick-and mortar business. However, by 2015, the company had upped its annual e-commerce investment from $1 billion to between $1.2 billion and $1.5 billion.
Walmart acquired e-commerce site Jet.com for $3.3 billion in 2016. The company has also been investing in same-day delivery and in-store pickup. Walmart appears to be poised to continue its investing and innovation in the 2020s, recently announcing an $11 billion commitment to store redesigns, including the addition of autonomous floor cleaners, shelf scanners and unloaders.
Walmart shares started the 2010s trading at around $54. The stock dipped as low as $47.77 in mid-2010, its lowest point of the decade. From that point forward, Walmart shares marched steadily higher, reaching $90.97 by the beginning of 2015.
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The stock then plummeted as e-commerce investments began eating into earnings. Walmart traded back down to $56.30 in late 2015 before e-commerce investments began to start paying off for investors.
2020 And Beyond
Walmart finally broke out to new highs in 2017 and made it as high as $125.38 in 2019, its high water mark of the 2010s.
Though the stock has since pulled back below $120, Walmart investors still made positive returns in the 2010s. In fact, $100 worth of Walmart stock in 2010 would be worth about $286 today, assuming reinvested dividends.
Looking ahead, analysts expect Walmart to make new highs again in 2020. The average price target among the 30 analysts covering the stock is $130, suggesting 10.3% upside from current levels.
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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.