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.
As the economy gradually moves towards normalization and there is a ramp-up for vaccinations, auto parts retailers like Advance Auto Parts, Inc. (NYSE:AAP) are poised to benefit, despite strong comps in 2020, according to Goldman Sachs.
The Advance Auto Parts Analyst: Kate McShane upgraded the rating for Advance Auto Parts from Sell to Buy, while raising the price target from $180 to $227.
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The Advance Auto Parts Thesis: The company has announced a three-year strategy, which includes projections of steady revenue growth and consistent margin expansion, “coupled with a cyclical post-pandemic recovery in the critical do-it-for-me (DIFM) segment of the auto parts space,” McShane said in the upgrade note.
The analyst mentioned six reasons for the double tier upgrade:
- Improving P&L dynamics
- Cyclical recovery in DIFM, where Advance Auto Parts has greater exposure than peers
- Improving DIY space, where the company’s “new private label and loyalty program appears to be resonating with customers”
- Higher capital allocation to shareholders
- The “ability of the auto parts space to pass-through inflation”
- Valuation, which looks “appealing vs history, especially in light of improving macro and company-specific dynamics,” McShane wrote.
(Photo by Erik Witsoe on Unsplash)
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.