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.
- Needham analyst Scott Berg reiterated a Buy on BigCommerce Holdings, Inc (NASDAQ:BIGC) with a $20 price target.
- BigCommerce announced stronger-than-expected Black Friday and Thanksgiving sales than expected, with GMV up 31% Y/Y.
- While this data point was released in a bit of a vacuum since the company did not offer it last year, he noted that the company did announce that 2021 Cyber Week GMV grew only 15% Y/Y.
- However, BIGC's GMV growth was much more substantial than the 1.4% reported by Adobe Inc (NASDAQ: ADBE) Adobe Analytics and the 17% reported by Shopify Inc (NYSE: SHOP), which he believes is a strong indication of two items.
- 4Q22 PSR outperformance can be better than the 7% reported in 4Q21. The growth likely indicates that the company's upmarket Enterprise focus is selling well since these customers have higher overall volumes with more predictable sales, Berg wrote.
- Raymond James analyst Brian Peterson had a Market Perform rating.
- The 31% growth in Black Friday GMV (and the 23% growth on Thanksgiving) is well more than the consensus PSR revenue, calling for just 10% growth Y/Y.
- Peterson knew that PSR revenue drivers are not a one-to-one correlation for GMV, although early data suggest that trends are coming in above his initial expectations.
- Peterson was also encouraged to hear that merchants began to see holiday purchase spikes in October, although it's unclear to what extent current trends will continue into December.
- Either way, the news offers a positive development for shares that are down 78% YTD, with a potential for a 4Q22 beat offering a near-term positive catalyst for a stock that trades at just 2x his CY23 revenue estimate.
- Price Action: BIGC shares traded higher by 6.72% at $8.42 on the last check Tuesday.
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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