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.
Shares of Mattress Firm (NASDAQ: MFRM) traded up two percent Wednesday following its first quarter earnings release and conference Tuesday.
Below are some of the highlights and key takeaways:
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!
Sales and Store Growth:
• Very encouraged by the steps it has taken to grow the business, evidenced by both its same-store and total store growth during the first quarter.
• Many of the initiatives we put in place had already started contributing positively as we move into the important summer selling season.
• Our growth during the first quarter was highlighted by a strong net sales increase of approximately 21 percent.
• Our third consecutive quarter of positive same-store growth.
• The completion of three acquisitions during the quarter that added 92 stores and the signing of a fourth acquisition that is expected to add approximately 75 stores.
• Company currently has 1300 units.
• Our acquired stores continued to outpace the overall chain as demonstrated by their approximately eight percent same-store sales growth.
• Comparable store sales growth of 4.3 percent was comprised of a 3.9 percent increase in unit sales and a 0.3 percent increase in AUP.
• Sales of specialty mattress products comprised 40.9 percent of our net sales, compared with 47.0 percent during the prior-year quarter.
• Sales of conventional mattresses comprised 49.1 percent of our net sales, compared with 44.0 percent during the prior-year quarter.
Acquisitions:
• The company borrowed $100 million in incremental term loans during the first quarter under our senior credit facility to fund recent acquisitions
• Also too repay $21 million of outstanding revolver borrowings.
• On April 25 of this year, the company entered into an agreement to purchase the mattress retail operating assets of Mattress Liquidators, Inc. consisting of approximately 75 stores.
• Acquisitions have resulted in an initial drag on gross margins as we integrate and convert the acquired stores.
Share Repurchases:
• The total purchase price was approximately $65 million, which remains subject to customary post-close purchase price adjustments.
• Mattress Firm delivered 71,619 shares of its common stock to the seller as payment for $3.25 million of the aggregate purchase price
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.