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.
- Data analysis provider Palantir Technologies Inc (NYSE:PLTR) CEO Alexander Karp received compensation valued at $1.1 billion for 2020, including $798 million in options and $296 million in restricted stock, the Wall Street Journal reports.
- Meal delivery provider DoorDash Inc (NYSE:DASH) CEO Tony Xu received restricted shares initially valued at over $400 million.
- The median pay for S&P 500 CEOs in 2020 was $13.4 million, and the highest compensation package was valued at $211 million.
- Neither Palantir nor DoorDash is profitable or part of the S&P 500 index.
- Both the companies describe the awards as tools to retain and motivate their CEOs to drive the companies’ valuations.
- Xu owns a 5% stake in DoorDash but retains 71% of its voting power. Karp holds 5.1% of Palantir’s voting power and also has voting agreements with the co-founders.
- Xu founded DoorDash with Stanford University classmates in 2013. The company capitalized on the pandemic-induced restaurant-delivery order boom. It reported a revenue of $2.9 billion and a loss of $461 million in 2020.
- Karp assisted Palantir when it was started in 2003 with PayPal Holdings Inc (NASDAQ:PYPL) co-founder Peter Thiel’s financial support. Palantir reported revenue of $1.1 billion and a net loss of $1.2 billion in 2020.
- DoorDash’s stock price needs to average at least $501 for six months before late Nov. 2027 for Xu to receive 100% of the award worth $5.2 billion.
- Karp’s award of Palantir options and restricted stock is worth $3.9 billion today under standard valuation techniques.
- Tesla Inc’s (NASDAQ:TSLA) Elon Musk received a stock option grant valued at $2.28 billion in 2018. The share price rose almost 10-times during the period. Earlier this year, Musk received full title to a tranche of options worth $32 billion.
- Price action: PLTR shares traded lower by 1.90% at $23.99, and PLTR shares are lower by 2.17% at $23.92 on the last check Thursday.
- Image Courtesy: Wikimedia Commons
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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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