September 25, 2013 9:35 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, Wells Fargo Securities analyst Larry Biegelsen reiterated an Outperform rating on
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.
(NYSE: SYK).In the report, Wells Fargo Securities noted, “This morning (9/25), SYK announced that it's acquiring MAKO for $1.65B which represents a 86% premium to the closing price yesterday. SYK expects the deal to be $0.10$0.12 dilutive in the first full year, neutral in year two, and accretive thereafter. SYK indicated that it expects the deal to be accretive on a cash basis in the first full year. Regarding valuation, SYK is paying 12.4x EV/sales on our 2013 sales estimate which is relatively high but MAKO represents a differentiated asset in our view. The 2 most recent ortho deals, MDT's acquisition of Kanghui and SYK's acquisition of Trauson went for 11.6x and 8.7x, on an EV/sales basis respectively. Given CEO Kevin Lobo's interest in robotics we do not view this deal as a total surprise. We have been bullish on MAKO due to the positive feedback on the company's new total hip application as well as the potential upside from international expansion and the total knee opportunity.”Stryker Corporation closed on Tuesday at $70.83.
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