October 25, 2011 9:54 AM | 1 min read |
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.
Bank of America Merrill Lynch is out with its report today on Universal American (NYSE: UAM), lowering its PO to $12In its report, Bank of America Merrill Lynch writes, "Overall, we continue to believe UAM could fare well through the 2012 presidential election cycle with the federal government reluctant to implement regulations that negatively impact seniors, who are a powerful voting constituency. Longer term, UAM does not appear as well positioned to handle rate cuts in health care reformlegislation, because it covers more PFFS members that experience higher cost trends. Our $12 PO assumes an 11x P/E on our 2012 EPS estimate of $0.55 plus excess capital. M&A (we estimate a 20% probability at $15) is potential upside."Bank of America Merrill Lynch maintains Neutral on UAM.At the time of posting, shares of UAM were trading at $11.00, down 1.35% from Monday's close.
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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