October 31, 2014 11:23 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.
Groupon, Inc. (NASDAQ: GRPN) reported a mix bag of earnings last night. The digital camera maker reported an increase in revenue to $757.1 million in 3q 2014 a 27% increase from 3q 2013. Profit was reported at $380 million vs. $359.6 million on a y/y basis. An increase of 5.67%
Brean Capital issued a report this morning summarizing and highlighting key takeaways from GRPN’s earnings. This is the summary:
Brean Capital has rated Groupon (NASDAQ: GRPN) as a “Buy” with a target price of $8 per share. An upside potential of 33%, when compared to the close on Thursday evening of $5.99 share.
The key takeaway was the double digit growth of the North American market vs. the 1.8% y/y increase from last quarter and Brean’s 5% target. They viewed this performance metric as a “pleasant surprise.”
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“Mobile Metrics Continue to Impress” GRPN apps have been downloaded more than 100 million times and these transactions account for more than half’s of its revenues!
Brean noted that GRPN is one of Apple Pay’s launch partners. Such a move validates GRPN’s mobile footprint and should bode well for the equity in the coming quarters.
On the buyback: Brean calculates that GRPN has spent $200 million of the $300 million allocated for buyback. The reaming $100 million will be continue to be put to play in the coming 4 quarters.
The next catalyst on GRPN will be on the 11th of November; its analyst day.
As of printing shares of GRPN are up 12.4% on volume that 2x of an average day.
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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