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 morning, Stryker (NYSE: SYK), a leading medical technology company, announced they have come to an agreement to acquire MAKO Surgical (NASDAQ: MAKO) for $1.65 billion.
Stryker will acquire all of the outstanding shares of MAKO for $30.00 per share in cash. The transaction is subject to customary closing conditions, including MAKO stockholder approval. This transaction contemplates the issuance by MAKO of an additional 3.953M shares in connection with an anticipated acquisition which Stryker expects MAKO will consummate as part of MAKO's normal course of business.
According to Kevin Lobo, Stryker President and Chief Executive, "The acquisition of MAKO combined with Stryker's strong history in joint reconstruction, capital equipment (operating room integration and surgical navigation) and surgical instruments will help further advance the growth of robotic assisted surgery. Our combined expertise offers the potential to simplify joint reconstruction procedures, reduce variability and enhance the surgeon and patient experience. We look forward to welcoming the MAKO team to Stryker."
MAKO Surgical's overall option implied volatility of 49 is below its 26-week average of 55 according to Track Data, suggesting decreasing price movement into Stryker acquiring all of the outstanding shares of MAKO for $30.00 per share in cash
When MAKO resumed trading, shares were up 82% to $29.50 after buyout. Shares of intuitive Surgical (NASDAQ: ISRG), another robotic surgery marker, are up 4% to $378.79 following the MAKO deal and a positive analyst note out of SunTrust.
Upon closing, the transaction is expected to be dilutive to Stryker's adjusted EPS excluding acquisition and integration-related charges by approximately 10c-12c in the first full year, neutral in year two and accretive thereafter according to FlyOnTheWall.com.
Additionally, the transaction is expected to be slightly accretive to adjusted cash earnings per share, excluding acquisition and integration-related charges in the first full year. As of June 30, Stryker's cash and cash equivalent balances totaled $4.7 billion with an additional $2.8 billion in debt.
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.
ENTER TO WIN $500 IN STOCK OR CRYPTO
Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!