November 14, 2014 12:00 PM | 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.
Paul Trussell of Deutsche Bank had some interesting commentary 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.
(NYSE: WMT) following its third quarter results on Thursday.“Most retailers with zero earnings growth this year and likely next year as well, are not typically rewarded with multiple expansion,” Trussell wrote in a note on Thursday. “However, Wal-Mart is different than most retailers.”Trussell notes that Wal-Mart's differences stems from it being a consumer staple replacement providing yield and stability, but at a lower multiple average compared to Food stocks. The analyst adds that Wal-Mart is a play on the “low-end theme” as consumers strapped for cash are benefiting from lower energy and gas costs.Trussell also states that Wal-Mart is a “big box retailer going through a transformation” with a new management team and a revised focus on e-commerce, smaller store growth and a better in store experience.However, despite the top-line improvement seen in Wal-Mart's quarter results on Thursday, the company is facing a period of heavy investments which will continue for the foreseeable future.Shares are Hold rated with a price target raised to $76 from a previous $72.
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