March 6, 2015 4:02 PM | 2 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.
Authentidate HoldingCorp. (Nasdaq: ADAT), a provider of web-based software applications andtelehealth products and services for healthcare organizations, announced todaythat the Department of Veterans Affairs (VA) has informed the company that itdoes not intend to exercise the fourth and final option year under its CareCoordination Home Telehealth Program contract for devices and services. Thecompany's agreement with the VA, which was originally awarded in April 2011,consisted of a base year and four one-year option years that were exercisableat the VA's sole discretion. The current option year under the contractexpires on May 15, 2015 and the company anticipates that it will complete itstransition process with the VA by that date.Ian C. Bonnet, Authentidate's recently appointed Chief Executive Officerstated, "The VA contract contained no minimum purchase requirements and thecompany was never able to realize the level of growth and profitabilityanticipated from the VA relationship, despite its best efforts and thecommitment of substantial resources. Although we are obviously disappointedwith the VA's decision, the expiration of this contract will allow us toreduce our operating costs in excess of the average monthly recurring revenueand equipment margins previously generated from the VA project. This willallow us to repurpose our investments to focus on offering a broader array ofsolutions to the healthcare market than we already have available and toincrease our sales efforts on the commercial market opportunities for ourproducts and services, which we believe have greater potential."In response, the company will immediately implement plans to reduce itsoperating costs to better align its resources with its anticipated revenueover the next several quarters and the growth opportunities that it intends topursue. These changes include a reduction in staff and the use of externalresources and other costs. The company also expects to report significantlyreduced revenues over the next several quarters due to the non-renewal of theVA contract.Mr. Bonnet concluded, "Authentidate has invested considerable time andsignificant resources developing state-of-the-art products and services, andwe believe our proprietary software offers unique advantages to a healthcareindustry that relies increasingly on technology to reduce costs, improveefficiencies and enhance patient outcomes. The VA has extensive requirementsnot necessary in commercial sectors. While some of those requirements haveinnovated our offerings, others are simply not value add to commercialcustomers. By no longer building legacy products to those specifications, wewill be able to dedicate more resources to more meaningful efforts for ourcustomers and shareholders, exploit the key advantages of our products andservices and focus our product development and sales efforts on healthcareorganizations with the greatest demand for telehealth and Inscrybe solutions.As part of this strategy we intend to pursue strategic relationships withindustry partners to supplement our marketing efforts."
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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