August 5, 2013 9:00 AM | 1 min read
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.
In a report published Monday, Piper Jaffray analyst Auguste Gus Richard downgraded the rating on
QUALCOMM (NASDAQ: QCOM) from Overweight to Neutral, and lowered the price target from $71.00 to $67.00.In the report, Piper Jaffray noted, “This earnings season several companies indicated they are seeing weak demand for high-end smartphone components. Moreover, our recent checks with foundry contacts now indicate they are seeing cancellations for components used in high-end smartphones by component vendors. These cancellations have gained momentum over the last several weeks. At the same time, MediaTek, the low-end Chinese OEM supplier, announced unit cell phone chipset shipments that were up 49% Q/Q and guided units up roughly 20% Q/Q. We believe these datapoints point to an accelerating mix shift to the low-end that we believe will impact QCOM's royalty stream. Our below-consensus FY14 estimates anticipate this shift. Due to deteriorating fundamentals, we trim our PT multiple to 15x from 16x, lowering our PT from $71 to $67 and move to Neutral.”QUALCOMM closed on Friday at $66.75.
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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