December 3, 2014 9:24 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.
In a note out this morning, analyst John Glass of Morgan Stanley upgraded shares of El Pollo Loco Holdings (NASDAQ: LOCO) to Equal Weight based on valuation. He raised the price target from $23 to $25 on the shares, feeling a recent refinancing will add approximately 10 percent to 2015 EPS. Mr. Glass further states:"While we have always been proponents of LOCO as a strong regional brand with sound expansion plans, valuation kept us cautious as the post IPO valuation made shares the mostexpensive even of its highest growth peers. Now at 39x our '15 EPS estimate, the shares are trading at only a 6% premium to peers such as FRGI, vs. 130% during the post-IPO peak, as increased float (not fundamental concerns) normalizes valuation."He feels the fundamental story is still intact, and valuations are now in line with fast casual average, which Mr. Glass views as reasonable. Shares of LOCO are trading up 3.5 percent at 26.40 in pre-market tarding, above the $25 price target.
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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