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.
Intel Corporation (NASDAQ: INTC) surprised the Street on Wednesday by reporting better than expected second-quarter numbers. However, Alex Gauna, JMP Securities analyst, isn't too impressed. Gauna was on CNBC Thursday to explain why.
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"I think, coming into this call most of the Street was expecting a miss, certainly JMP Securities was," Gauna said. "So, this is a bit of a relief bounce here, but what we are pointing out is that all Intel managed to do was exceed reduced expectations."
"This is still a story where revenue is declining, inventories climbed on the quarter, the company brought down full year expectations. Gross margins are contracting and that's not the kind of the environment where we think investors should be running towards this stock."
Fundamental Change In Landscape
Gauna was asked what will make him change his stance on the company from negative to positive. he replied, "We'd have to see a fundamental change in the landscape. What's happening right now in the background is that Intel is seeding market share to ARM-based computing alternatives. Really doesn't have a strategy that's working in mobile. It appears to have abandoned its foundry activity. Now, buying its largest foundry company rather than forging ahead with a foundry strategy. So, we need to see some changes there."
"And the other thing that we'd like to see. We'd rather see CAPEX going up rather than down. It really tells us that Intel has some concerns itself about its own intermediate term outlook. That's also why we think they made such a desperate bid, overpriced bid for Altera," Gauna concluded.
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.