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.
- Benchmark analyst Mike Hickey reiterates Take-Two Interactive Software, Inc (NASDAQ:TTWO) with a Buy rating and a $120 price target.
- The analyst balances execution risk favorably for the quarter, which should benefit from continued sales of live service and mobile net bookings growth (estimate: 105%), over a rationalized guidance view subsequent 3Q FY23 that now could prove conservative.
- He is optimistic that mobile trends will stabilize as TTWO laps macroeconomic pressure and engagement normalizes.
- The analyst identifies significant execution risk on upcoming Q1 FY24, and FY24 initiated guidance and has limited visibility on new game launches anticipated to drive growth.
- Given that the macroeconomic conditions may persist or worsen through FY24, the analyst has more modest expectations from mobile, live services, and premium games.
- Risk is somewhat offset by contracting consensus growth estimates and broadening awareness of presumed adverse guidance risk.
- The analyst has seen more evidence to believe in the launch of the GTA Next in FY25 and provide a significant catalyst for net bookings and profitability growth.
- He considers FY24 guidance as a potentially limited window for an opportunistic entry point where downside volatility on the release could be pronounced by short-lived.
- The analyst is optimistic about a potential reset on TTWO acquisition interest if Microsoft Corp (NASDAQ:MSFT) can successfully navigate regulatory challenges and close its Activision Blizzard, Inc (NASDAQ:ATVI) transaction.
- He is optimistic that generative AI can increase productivity, a potential profit growth catalyst.
- Price Action: TTWO shares traded lower by 1.42% at $119.26 on the last check 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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