CIT (NYSE: CIT) not only announced the results of its second quarter, but also announced the acquisition of OneWest Bank for $3.4 billion.
The acquisition is expected to be 20 percent accretive to 2016 earnings and have an IRR of 15 percent. The deal will add $23 billion in assets; this includes a portfolio of loans and $15 billion in deposits.
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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John Thain, CEO of CIT commented on the deal, “The transaction diversifies and lowers the cost of CIT's deposits, broadens the products we can offer to our middle market clients, is accretive to earnings and return on equity, and accelerates the utilization of our NOL, while maintaining a strong capital position.”
OneWest Bank shareholders will receive $2 billion of cash and $1.4 billion of stock.
Shares of CIT have exploded higher since the deal was announced and were last trading at $47.25, 7.5 percent above Monday’s close.
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.