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.
Andrew Left
Citron Research’s Andrew Left criticized insurance company Lemonade Inc (NYSE:LMND) on Friday, saying its stock multiple is based on empty marketing tactics.
The Lemonade Bear Case: In a Twitter live video, Left dismissed Lemonade Inc's claims of bringing new technology to the insurance industry, saying the company's technology is no different from insurers like Progressive Corp. (NYSE:PGR) or State Farm.
"They've been lying to their customers and their shareholders," said the noted short seller.
The company has not responded to a request for comment.
See also: Lemonade Home Insurance Review
Not An ESG Company: He also blasted Lemonade's claims of being a "social good" company as an easy marketing ploy.
Left said Lemonade is taking advantage of younger investors' interest in supporting companies that have a positive social impact, like Tesla Inc (NASDAQ:TSLA).
"It's playing on the millennial investors," he said, adding that the company has a higher multiple than Zoom Video Communications (NASDAQ:ZM), Uber Technologies Inc (NYSE:UBER) or Tesla Inc (NASDAQ:TSLA).
Lemonade insiders have sold $400 million in the past six months but gave just $1 million to charity last year, he said.
Left said the Securities and Exchange Commission and the Federal Trade Commission should look more closely at companies that make claims of being socially responsible.
Price Action: Shares of Lemonade ended Friday's trading down 6.79% at $147.74 on Friday. Left's video posted to Twitter at 11:30 a.m.
Related Link: XL Fleet Spikes On CEO’s CNBC Plug, Citron’s Long Call
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.
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