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.
- PepsiCo is facing a significant supply chain challenge due to the escalating violence in Sudan, which produces up to 70% of the world's gum arabic, a key ingredient in their signature drink.
- In April, Pepsi's stock price surpassed last year's high at $186 and trades above the daily 20, 50, and 300 simple moving averages, indicating a potentially bullish trend.
- Investors should be cautious of the $200 psychological resistance level and anticipate deep corrections, as the stock's historical performance has displayed few linear trends.
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PepsiCo, Inc. (NASDAQ:PEP), a veritable titan in the global beverage and snack industry, is facing an unprecedented supply chain challenge. Access to gum arabic, a key ingredient for their signature drink, has been put at risk due to escalating violence in Sudan, home of up 70% of the world's production.
Despite this obstacle and other difficulties over time, stock prices have continued with remarkable resilience, remaining on track for long-term growth even under strenuous circumstances.
Gum arabic is worth a whopping $1.1 billion in production each year. Unfortunately for its manufacturers, the situation of Sudan, where this crucial resource primarily grows, has cast doubt on whether it will remain as accessible as usual or not.
Despite such challenges, Pepsi's stock has maintained a long-term uptrend since October 1974, when its price was at a mere 54 cents.
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The stock has since increased by over 25,000%, enduring several obstacles along the way. From January 2008 to April 2012, the stock price moved sideways, and it experienced a 30% decline during the COVID-19 pandemic. Nevertheless, the stock has proven its resilience, rallying time and again.
In April, Pepsi's stock price broke above last year's high at $186, and it currently trades above the daily 20, 50, and 300 simple moving averages.
As the stock just emerged from a long-term consolidation that began in November 2022, investors will be closely watching for a pattern of higher highs and higher lows to confirm the continuation of the bullish trend.
Even if the bull trend resumes, investors must be mindful of the $200 psychological resistance level, which could force the stock price to turn back.
The stock's historical performance has displayed few linear trends, and investors should anticipate deep corrections along the way.
After the closing bell on Friday, February 24, the stock closed at $190.89, trading up by 0.63%.
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.