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.
Morgan Stanley freight analyst William Greene previewed FedEx Corporation (NYSE: FDX) earnings on Friday. FedEx is set to release first quarter 2015 results September 17.
Greene discussed whether or not an earnings beat was already priced into the stock.
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Analysts feel at a minimum, earnings should come in at consensus. Green offered four reasons why earnings may beat estimates:
- Beginning in 2014 Airfreight demand trends have increased internationally.
- FedEx has improved annual run-rate cost savings.
- In the previous may quarter, LTL (less-than-truckload) tonnage offered a big upside surprise.
- In most of the previous fiscal year fuel surcharges were negative; for first quarter 2015 analysts expect fuel surcharges to be about $0.20 positive.
Greene pointed out that historically, FedEx has traded at a premium P/E relative to the S&P 500. Currently, FedEx is trading trading inline with the 10-year average P/E; potentially offering upside with an earnings beat.
Shares of FedEx traded recently at $153.88, up 0.89 percent.
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.