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.
Stock traders often have to determine whether they prefer to invest in stocks with a strong upward momentum or stocks that are value plays with appealing fundamentals. Fortunately, by doing a little digging, sometimes investors don’t have to choose.
Life insurance stocks have been on fire in 2014, but solid underlying business performance means that some of these insurers still have reasonable valuations even after big run-ups in share price.
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MetLife Inc (NYSE: MET)
MetLife shares are up 7.3 percent this year, and the stock is so close to all-time highs that shareholders can almost taste it. However, MetLife’s fundamentals would still look pretty appealing to a value investor. MetLife’s forward price to earnings ratio (P/E) is currently sitting in the single digits at 9.3. The stock’s price to tangible book value (P/TBV) is hovering right around 1.0.
The stock has had strong upward momentum since mid-2012, but this year it has struggled to break out to new highs above the $56 level. With the company’s solid valuation numbers, a strong technical breakout above $56 could be the recipe for a big pop for shareholders.
Lincoln National Corporation (NYSE: LNC)
Lincoln National shares have returned nearly 12 percent in 2014, and momentum has recently carried the stock to its highest level since the beginning of 2008. Despite the upward climb, the stock’s fundamentals remain appealing, as its forward P/E is only 9.2 and its P/TBV is 1.1.
Deutsche Bank downgraded Lincoln National’s stock in November from Buy to Hold, citing a slowdown in earnings growth. However, the stock has shown no signs of slowing down.
Stocks with strong momentum and reasonable valuations do exist, and these two insurers are good examples of what investors can dig up if they look hard enough.
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.