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.
The media sector is an "industry in transition" and several legacy media giants aren't ideally positioned moving forward, according to BofA Securities.
The Analyst: Jessica Reif Ehrlich downgraded the following media names:
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ViacomCBS Inc (NASDAQ:VIAC) from Neutral to Underperform, price target lifted from $30 to $32.
Discovery Communications Inc. (NASDAQ:DISCA) downgraded from Neutral to Underperform, price target lowered from $32 to $25.
IHeartMedia Inc (NASDAQ:IHRT) downgraded from Neutral to Underperform, price target lowered from $12 to $10.
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The Viacom Downgrade: The new bearish case for Viacom's stock is based on:
- The resumption of scripted content will negatively impact free cash flow.
- Lack of clarity on incremental marketing, tech, and content spend related to the 2021 Paramount+ rebrand.
- Viacom may be losing the streaming video race as other major studios accelerated their streaming ambitions.
- Continued "overhang" from the National Football League.
- Delayed theatrical releases.
The Discovery Downgrade The case against Discovery's stock is based on:
- Unclear signs of how successful Discovery+ will be and what impact a streaming platform will have on linear TV viewership.
- Higher competition adds pressure to Discovery to create "must-have" content.
- Competition with substitute products like YouTube.
- Long-term streaming EBITDA margin estimates of around 20% are "significantly lower" versus cable networks at more than 40%.
The IHeart Downgrade: IHeart media boasts a "healthy" liquidity position, manageable debt levels, and potential benefits from Liberty Media increases its stake up to 50%, the analyst wrote. However, investors may want to avoid the stock given:
- Low visibility on terrestrial radio advertising trends.
- An "elongated" recovery timeframe.
- No near-term compelling catalysts.
- High leverage of10 times 2020 net debt/TTM EBITDA.
Price Action: Shares of ViacomCBS were trading lower by 3.3% at $35, while shares of Discovery were down 2.5% at $28.02 and shares of iHeartMedia were lower by 4.5% at $12.08.
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.