27% profits every 20 days?
This is what Nic Chahine averages with his options 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's (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.
Adobe’s Big Decade: One top performer of the last decade was digital media software company Adobe Inc (NASDAQ:ADBE).
Adobe has spent the past decade building a dominant market position in the high-growth field of creative software. Key products include Photoshop, Illustrator, and InDesign. In addition, it has generated impressive cash flow from its high-margin software business that it has used to aggressively buy back stock.
Adobe shares started the 2010s trading at $37.09 and hit their decade low of $22.67 in late 2011. Adobe shares then went on a tear for the next eight years. Not even a major security breach in 2013 that exposed records of 150 million customers could keep the stock down for long.
Adobe hit $100 for the first time in 2016, $200 for the first time in 2018, and eclipsed $300 in mid-2019. Adobe shares made it as high as $386.74 in February of this year before the COVID-19 market sell-off. Adobe briefly fell back as low as $255.13 in March before quickly bouncing back.
2020 And Beyond: Adobe broke out to new all-time highs during the broad market rebound in May, peaking at $409.98 just this week.
Overall, Adobe has been a home run investment over the past 10 years. In fact, $1,000 worth of Adobe stock in 2010 would be worth about $12,600 today.
Looking ahead, analysts expect Adobe to cool off a bit in the coming months. The average price target among the 23 analysts covering the stock is $350, suggesting 11.9% downside from current levels.
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27% profits every 20 days?
This is what Nic Chahine averages with his options 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.
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