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.
Genius Brands International Inc. (NASDAQ:GNUS) surged more than 2,850% since May on news of operational improvements and investments.
The children’s entertainment company announced early last month it would merge its “Kid Genius Cartoon Channel” and “Baby Genius TV” into a digital network. CEO Andy Heyward called it a free “Netflix for kids” and, in an appeal to today’s parents, an “economic vaccine for COVID-19.”
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The company also announced the debut of a toy line for its “Rainbow Rangers” show.
See Also: Why Genius Brands Is On A Massive Rally, Adding Nearly 2500% Value In A Month
To Citron Research, the developments didn’t warrant the dramatic price surge. Citron’s Andrew Left predicted a plunge “to $1...fast.”
“The lowest form of retail investor,” the short-seller and activist investor said in a tweet.
$GNUS to $1...fast The lowest form of retail investor. Consider: LTM $GNUS rev $5 mil mkt cap $800 mil compare to leader WildBrain (teletubbies) LTM revenue of $332 million mkt cap $175 mil Not to mention massive dilution at $GNUS. Stock Promotion
— Citron Research (@CitronResearch) June 4, 2020
By Citron's calculations, Genius Brands can’t hold a candle to rival WildBrain. In the last 12 months, Genius Brands recorded $5 million in revenue and an $800 billion market cap compared to WildBrain’s $332 million in revenue and $175 million market cap.
“[J]ust got corrected…$2 BIL mkt cap for $GNUS,” Left said shortly after his first tweet. “What a complete joke. Cheap stock about to flood the market. This is child's play.”
Genius Brands traded down 40% to $4.65 per share, sporting a $455 million market cap at the time of publication.
Photo snippet courtesy of Nick Jr./Rainbow Rangers.
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.