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 blog post on Thursday, former hedge fund manager Whitney Tilson, who runs investment advisory firm Empire Financial, recently highlighted a stock that has nearly all the traits of a "buy and hold."
The investor was referring to Amazon, Inc. (NASDAQ:AMZN), which reported its quarterly results late Thursday. The stock reacted to the earnings news with nearly a 4% decline on Friday, as investors fretted over the slowdown in the cloud business.
"While Amazon isn’t the kind of stock that you can just buy and forget about, like Berkshire Hathaway, Inc. (NYSE:BRK) (NYSE:BRK) is, it’s pretty close…" Tilson wrote.
"Nothing in yesterday’s earnings report changes my view that Amazon will continue to be a long-term winner."
Tilson noted that Amazon still holds about 34% of the cloud market and is the leader in the field. The underperformance in Amazon Web Services’ revenue growth versus the growth of cloud businesses at Microsoft Corp. (NASDAQ:MSFT) and Alphabet, Inc.'s (NASDAQ:GOOGL) (NASDAQ:GOOG) Google Cloud Platform led to weakness in Amazon’s stock, he explained.
Deepwater Asset Management's Gene Munster said late Thursday following Amazon's results that his firm does not currently own Amazon.
“What keeps me up at night not owning AMZN: The company's growth rates should start to improve in the back half of this year,” he added.
Amazon ended Friday's session down 3.98% at $105.45, according to Benzinga Pro data.
See Also: Best Technology Stocks Right Now
Photo: Shutterstock
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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