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.
Keefe, Bruyette & Woods downgraded JPMorgan Chase & Co. (NYSE: JPM) Monday from Outperform to Market Perform and set a $64 price target.
Analyst Christopher Mutascio noted that the company had "substantially outperformed the BKX and the S&P 500 over the past six months, and based on our view that there is potentially more downside risk than upside risk to our current EPS estimates if the Fed is slow to raise interest rates."
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"We are downgrading the shares based on valuation. Potential upside to our $64 target price is now just 3 percent (excluding dividend) and our target price is already based on our 2016 EPS estimate. We are unwilling to apply a P/E multiple greater than 10x our earnings estimate two years out in arriving at our target price for such a heavily regulated company," according to Mutascio.
The report concluded that the "2015-2016 EPS estimates already assume more than 15 basis points of net interest margin expansion from the 3Q14 level with the assumption the Fed raises interest rates in 3Q15. If we assume no margin expansion, our 2015 and 2016 EPS estimates would be reduced by $0.12 and $0.48, respectively."
Overall, Mutascio felt that the "recent surge in bank stocks is overdone."
JPMorgan Chase traded at $61.78 in the pre-market session, down 0.24 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.