August 15, 2012 12:43 PM | 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.
In a report published Wednesday, Bank of America Merrill Lynch reiterated its Buy rating on Tesoro Logistics LP (NYSE: TLLP), and raised its price target from $37.00 to $47.00.BofA Merrill Lynch noted, “We are raising estimates to incorporate over $1.3bn in recently announced asset drop-downs to TLLP from its general partner (GP), Tesoro Corp. (TSO), planned for completion by 2014. With its 2Q12 earnings report on 1 August, TSO announced plans to drop-down its Long Beach marine terminal and Los Angeles short-haul pipelines to TLLP in 3Q12 and its Anacortes unit train unloading facility in 4Q12. We estimate the price of these drop-downs at ~$380mn based on a 9.5x multiple on $40mn in estimated annual EBITDA, in line with management EBITDA guidance. In addition, Monday before market open, TSO announced a $2.5bn acquisition (including working capital) of BP's Southern CA refining and marketing business, and plans to drop-down ~$1bn in associated logistics assets to TLLP in the twelve months following acquisition close, which is expected before mid-2013.Tesoro Logistics LP closed on Tuesday at $41.56.
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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