UPDATE: JP Morgan Downgrades Big Lots to Underweight on Micro Issues


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.


JP Morgan reduced its ration on Big Lots (NYSE: BIG) from Neutral to Underweight and lowered its price target from $41 to $34. JP Morgan commented, "Structurally, BIG's EPS profile has changed with EBIT $ falling in 2011 and a similar scenario likely this year (share buybacks representing more than 100% of EPS growth). At a micro level, the consumables category remains the company's Achilles heel (lack of top-line consistency) – an area undergoing change, but tougher compares (+520bps in 2H) and stronger competition (private label pricing, CA expansion) likely extends the turnaround. Looking ahead, we see downside to 2H12 and 2013 estimates given continued top-line (consumables competition; discretionary exposure) and margin (mix shift) concerns."Big Lots closed at $41.31 on Thursday.

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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Posted In: Analyst ColorDowngradesPrice TargetIntraday UpdateAnalyst RatingsJP Morgan