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.
Coupa Software Inc. (NASDAQ:COUP) shares rallied sharply in after-hours trading on Friday amid rumors of a potential sell-out. Late Sunday, a report named private-equity firm Thoma Bravo as the frontrunner in the bidding race for the company.
What Happened: Thoma Bravo is in advanced talks to buy cloud-based business spend management platform Coupa and the deal could be announced as early as this week, Bloomberg reported, citing people familiar with the matter.
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The private-equity firm has apparently outbid an offer from Vista Equity Partners, a technology-focused PE firm, the report added.
See Also: Best Technology Stocks Right Now
Late Friday’s sharp rally in Coupa stock was in reaction to another Bloomberg report that said private credit funds were mobilizing debt packages for a Coupa buyout.
Top Shareholders Shoot For Hefty Premium: Although the deal value is not yet known, Coupa’s top shareholders have been in touch with the company about its potential valuation, with HMI Capital Management calling for at least $95 per share in the eventuality of a sale.
This would mean a 53% premium over the $62.09 stock price at the close of trading on Friday. The premium would be a much higher 108% from the Nov. 22 closing price of $45.72, before the M&A rumors began swirling.
Coupa is scheduled to report its fiscal year 2023, second-quarter results after the market closes on Monday. Analysts, on average, estimate earnings per share to decline from $0.31 to $0.10 but revenue to climb 14.8%, to $213.3 million.
Price Action: After closing regular trading on Friday down 2.53% at $62.09, Coupa rallied 7.91% to $67 in extended trading, according to Benzinga Pro data.
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.