September 5, 2014 7:57 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 Friday, Bank of America analyst Vivek Arya reiterated a Buy 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.
(NASDAQ: BRCM), and raised the price target from $45.00 to $50.00.In the report, Bank of America noted, “BRCM trades at a 20%+ discount to the sector as investors worry about competitive risks in Wi-Fi connectivity and dilution from stock comp expense. However, we think the Street could be overlooking BRCM's core, leadership in attractive Networking and Broadband markets that account for 60%+ of sales and 80%+ of profits. We develop a sum of parts model that suggests a valuation of $46/sh (15% potential upside) even if Wi-Fi connectivity has zero value, primarily on the strength in the core business, with upside to $54/sh (35% potential upside) if connectivity sales can stabilize.At just 12x PE, 9x 2015E EV/EBTDA, solid 7-8% FCF yield, BRCM's assets look too attractive and transformation too impactful to ignore in a consolidating industry, in our view.”Broadcom Corporation closed on Thursday at $40.12.
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