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.
The Fuel Cell space is witnessing a spill over affect from the slump in shares of Plug Power Inc (NASDAQ: PLUG). Shares of Plug Power opened down more than 14% on Wednesday following the dismal third quarter results reported by the company before market opening.
Other two marquee names in the Fuel Cell space, Ballard Power Systems Inc. (USA) (NASDAQ: BLDP) and FuelCell Energy Inc (NASDAQ: FCEL) also opened for trade almost 3% lower than their Tuesday closing price. It seems like the worse than expected results from Plug Power has shaken investors’ confidence in the Fuel Cell space overall.
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Plug Power disappointed on both Revenue and EPS front. Whereas analysts on the Street were expecting the company to report revenue in tune of $24.37 million and an EPS loss of $0.03, Plug Power declared revenue of $19.9 and an EPS loss of $0.06 per share.
At the time of writing this, shares of Plug Power were trading at $4.28, down 15.75%, Fuel Cell shares were trading at $1.92, down almost 5% and Ballard Power Systems shares were trading almost 4% down at $2.68.
With a consensus price target of $2.70, analysts are generally bullish on Fuel Cell Energy. On August 15, analysts at Cowen and Company boosted their price target on the stock to $3.00 from $2.40.
Most analysts on the street maintain a ‘Hold’ rating on Ballard Power Systems, with the consensus price target of $3.70. On November 4, analysts at Roth Capital initiated a coverage on the stock with a ‘Buy’ rating and price target of $3.50.
In the last one year, stocks of Fuel Cell space have outperformed the market significantly. Plug Power was the leader in the rally that this space saw; its shares are up by over 700% year on year. Ballard Power Systems and FuelCell Energy investors also witnessed significant capital appreciation, with the stocks being up 100% and 44% year on year, respectively.
Disclosure: None
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.