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.
Darden Restaurants, Inc. (NYSE: DRI) saw three major research firms issue ratings for its stock this week, both before and after reporting its second quarter results.
Bank of America reiterated its Underperform rating, setting a price target of $47.00. Barclays also maintained its Overweight recommendation, accompanied by a $57.00 price target, while Telsey upgraded the stock from an Underperform to a Market Perform with a price target of $54.00.
Related topic: Darden Restaurants Puts Priority On Real Estate
Given that Darden’s stock already trades above $57.00 per share, no upside potential is implied. Are there more intriguing options in this space?
A Look At Peers
There are many investment options in the restaurant industry, and their characteristics differ widely. For instance, research firm Wunderlich seems to like BJ's Restaurants, Inc. (NASDAQ: BJRI). It issued a Buy rating, along with a $56.00 price target, a few days ago.
Analysts also see considerable upside potential in Chipotle Mexican Grill, Inc. (NYSE: CMG). Goldman Sachs initiated coverage on the stock on December 8 with a Buy rating and a $790.00 price target (the stock currently trades around $649.00), while Citigroup reiterated its Buy recommendation last month with a price target of $765.00.
Another favorite: Starbucks Corporation (NASDAQ: SBUX). Last week, Jefferies and Goldman Sachs issued Buy ratings for the company, with $97.00 and $95.00 price targets, respectively. In the previous week, JP Morgan reiterated its Overweight recommendation accompanied by an $89.00 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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