September 11, 2013 10:56 AM | 1 min read |
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 report published Wednesday, Morgan Stanley analyst Cheryl M. Pate initiated coverage on
PHH Corporation (NYSE: PHH) with an Equal-Weight rating and $23.00 price target.In the report, Morgan Stanley noted, “We see 9% upside to our $23 price target. Though we believe PHH is well positioned to benefit from an improving economy, valuation keeps us Equal-weight. PHH trades at the highest valuation of our mortgage servicing coverage group, at 9.4x 2014e EPS vs. a 7.9x peer group median. As credit-related costs decline to a more normalized level, we expect PHH to turn the corner on servicing profitability in the next few quarters, from -10bps in 2Q13 to +3bps in 4Q14e. We look for the company to benefit from lower credit-related costs as the economy improves and lower prepayment rates as rates continue to move up. A mortgage servicing rights (MSR) vehicle could provide 65bps additional upside to mortgage ROE for a 5-percentage-point increase to the subservicing mix.”PHH Corporation closed on Tuesday at $21.10.
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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