27% profits every 20 days?
This is what Nic Chahine averages with his options 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.
Former hedge fund manager Whitney Tilson, who recently removed electronics retailer GameStop Corp. (NYSE: GME) from the “Dirty Dozen” list of stocks to avoid, chimed in on the meme stock yet again.
What Happened: “What GameStop is doing is smart,” Tilson said, adding this was the reason why he removed it from the “Dirty Dozen” list.
To support his argument, he referred to a Wall Street Journal story that said GameStop is shrinking its way to profitability after its not-so-successful attempt to become an “e-commerce juggernaut” and an “online marketplace” for buying and selling non-fungible, or NFT, tokens.
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Billionaire Ryan Cohen, who runs the show at GameStop, has slowed the e-commerce push to focus on its roughly 4,400 brick-and-mortar stores, the report said. The company has also slashed costs, which allowed it to record its first profit in two years in the fourth quarter, it added.
Risk Remains: Despite taking GameStop off the “must-avoid stocks” list, Tilson is still wary of it.
“That said, I think the most likely outcome is that the company is now back to where it was before the meme stock foolishness – a melting ice cube – which makes its $6.8 billion market cap look very rich,” the former fund manager said.
He noted that GameStop shares trade at one times enterprise value to revenue compared to only 0.4% for bigger rival Best Buy, Inc. (NYSE:BBY). The latter, the analyst said, is a “much better-positioned” business.
Price Action: GameStop ended Thursday’s session up 0.18% at $22.50, according to Benzinga Pro data.
27% profits every 20 days?
This is what Nic Chahine averages with his options 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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