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.
Raymond James talked about homebuilders on Friday, and revealed that it's not very confident in the sector.
PulteGroup, Inc. (NYSE: PHM), the nation’s largest homebuilding company, was downgraded from Outperform to Market Perform. Raymond James analyst Buck Horne removed the stock's $26 price target.
Shares were down over 1 percent before the market opened Friday, and were recently trading lower by a half of a percent.
MDC Holdings (NYSE: MDC), one of the top 10 homebuilders in the nation, was also downgraded from Outperform to Market Perform. Horne removed his $28 price target; the stock was recently trading a bit lower by 2 percent on this news.
Other downgrades from Outperform to Market Perform include (as of the first half hour of market trading):
- KB Home (NYSE: KB): $15 price target removed. Stock was trading down almost 2 percent.
- Lennar Corporation (NYSE: LEN): $53 price target removed. Stock was down over half of a percent.
- Ryland Group, Inc. (NYSE: RYL): $48 price target removed. Stock was down 1.34 percent.
- Standard Pacific Corporation (NYSE: SPC): $9 price target removed. Stock was trading down about half of a percent.
Toll Brothers Inc. (NYSE: TOL) was downgraded from Strong Buy to Market Outperform, and its price target was lowered from $44 to $41. Toll was trading up about half of a percent.
Contrarian Ideas
In contrast, Raymond James decided to hold DR Horton Inc. (NYSE: DHI) neutral at Market Outperform, but lowered its price target from $31 to $29. The stock was trading down slightly.
Lastly, WCI Communities Inc. (NYSE: WCIC) was the only company that saw a price target price target increase, while its rating remained a Strong Buy.
Horne upgraded his price target from $28 to $30; the stock was trading up slightly above a half of a percent.
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.
ENTER TO WIN $500 IN STOCK OR CRYPTO
Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!