Eaton Vance Still Unattractive To Citi


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 recent report from Citi (NYSE: C), analysts are encouraged by the filling of Eaton Vance's (NYSE: EV) head of institutional business with Scott Ruddick, as well as the promotion of Matthew Witkos to oversee the firm's overall global distribution. Citi added that the stock screens expensively, as a number of stocks in the sector are being “squeezed higher”. Even with the filling of the positions, Citi sees Franklin Resources (NYSE: BEN) and T. Rowe Price (NASDAQ: TROW) as better plays relative to EV, due to superior flow, strategic positioning, and balance sheet leverage at cheaper valuation, with TROW mathematically more levered to equities updraft given assets under management mix vs. EV. Citi retains a Sell rating on EV but raises the price target $2 to $25 because of higher sector multiples and reduction of institutional risk. If market conditions improve greater than anticipated or if organic growth is higher than expectations the stock may outperform the target.EV closed Monday at $29.17TROW closed Monday at $49.88BEN closed Monday at $105.20

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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