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.
Investors who have owned stocks in the last 12 months have generally experienced some big gains. In fact, the SPDR S&P 500 ETF Trust (NYSE:SPY) total return since Sept. 28, 2020, is 34.7%. But there is no question some big-name stocks performed better than others along the way.
In September 2020, ChargePoint Holdings Inc (NYSE:CHPT) announced a plan to go public via a merger with special purpose acquisition company Switchback Energy Acquisition Corporation. At the time, Switchback shares were trading at just $14 per share. After the deal was announced, the stock took off like a rocket, surging as high as $49.48 in December 2020 in anticipation of the merger. (Unfortunately, shares still haven’t made it to $50.)
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ChargePoint’s Big Debut: The merger was approved by Switchback shareholders on Feb. 25, 2021. By that time, the stock had pulled back to $34.34.
On March 1, Switchback officially changed its name and stock ticker and ChargePoint shares began trading on the NYSE under the ticker CHPT. The stock finished its first day of trading at $30.11.
Unfortunately, ChargePoint failed to wow the market when it reported its first earnings report on March 12, 2021. Fiscal fourth-quarter revenue was down slightly compared to the previous year, and the company reported a fiscal 2021 net loss of $117.8 million.
The stock initially dropped 8% following the earnings report. The disappointing earnings report coupled with a general lack of enthusiasm for SPACs pressured the stock in the weeks that followed. By April 21, ChargePoint shares had fallen all the way back down to $19.04.
Recent News: On Sept. 2, ChargePoint shares initially jumped 12% when the company raised its revenue guidance. The rally quickly ran out of steam, and ChargePoint shares are still trading at around $20.73, near its lowest levels since November 2020.
Still, at the stock’s current level, $1,000 worth of ChargePoint stock purchased on Sept. 28, 2020, would be worth about $1,480 today.
Looking Ahead: Analysts are expecting ChargePoint's stock to regain its bullish momentum in the next 12 months. The average price target among the 11 analysts covering the stock is $36, suggesting a 77.8% upside from current levels.
Image: ChargePoint
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.