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.
CSX Corporation (NYSE: CSX) is set to kick of Q2 earnings season for railroad stocks on Tuesday. Here’s a breakdown of what to expect from CSX and the rest of the railroad industry this quarter.
Expectations
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!
According to Estimize, Wall Street is looking for EPS of $0.53 from CSX on revenue of $3.14 billion for the quarter. If CSX hits that mark, it would represent a 17.7 percent quarter-over-quarter growth in earnings, exactly in-line with Q2 2014’s $0.53 EPS for the company.
Recent History
Over the past two years, CSX’s stock has shown relatively little volatility following its earnings reports. Only one time in the last eight reports has the stock moved greater than 2.0 percent on the day following its earnings release, a 6.8 percent drop following Q4 2013’s earnings.
Following the last eight reports, the stock has reacted positively four times and negatively four times on the day after the reports. The largest positive reaction was only a 1.8 percent move following Q2 2013’s report. Overall, CSX is averaging a -0.87 percent return on the day following its last eight earnings reports.
Looking For A Turnaround
It’s not just CSX shareholders that will be watching closely on Tuesday.
Transport investors are hoping that Q2 numbers will provide a catalyst to reverse the industry’s under-performance in 2015. So far this year, the iShares Dow Jones Transportation Average ETF (NYSE: IYT) is down 10.5 percent.
Kansas City Southern (NYSE: KSU) reports on July 17, Union Pacific Corp (NYSE: UNP) reports on July 23, and Norfolk Southern Corp (NYSE: NSC) reports on July 27.
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.