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.
Wunderlich recently conducted a social media study using Facebook Inc (NASDAQ: FB), Twitter Inc (NYSE: TWTR) and Instagram across the apparel industry. The survey focused on trends aimed at assessing “consumer acceptance regarding brands, fashion, and relevant topics across the most popular social media platforms in order to determine what’s trending and what’s not.”
By concentrating on the most popular trending topics, the firm was able to determine the overriding themes affecting or even shaping fashion and shopping patterns in order to supplement its theses on several retailers it covers. Namely: Abercrombie & Fitch Co. (NYSE: ANF), Hollister (owned by Abercrombie & Fitch), American Eagle Outfitters (NYSE: AEO), Urban Outfitters, Inc. (NASDAQ: URBN), Guess?, Inc. (NYSE: GES) and New York & Company, Inc. (NYSE: NWY).
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In a report issued Wednesday, analyst Eric Beder looks into the results obtained over the last week. The analyst sees that brands are putting their efforts into promoting their recently-released back-to-school assortment. While some retailers focus on best selling categories, others are focusing on “less-known categories in order to increase awareness to their consumers.” Bottom line: it’s all about market share.
Abercrombie & Fitch (Sell rated)
Focusing on the back-to-school assortment, seeking to recuperate lost customers. However, the firm remains concerned on “how unoriginal the assortment looks compared to other teen retailers and fast fashion competitors.”
Hollister
Focused on its back-to-school collection, with an emphasis on a corpus of denim skinny jeans (jeggings) and a new body mist. The report notes, “Fans love the new back to school assortment offered by Hollister, and are on board with its lifestyle message.”
American Eagle Outfitters (Hold rated)
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Highlighted its back-to-school assortment as well, although it also drew attention to other categories in an effort to promote its brand as a lifestyle. Fans consider this fashion-forward assortment to be on point, while analysts at Wunderlich “hope this will successfully increase its market share in the Fall season.”
Aeropostale (Hold rated)
Has a new back-to-school collection that “looks just as amazing online as it does in the stores and as it did on Preview Day.” While remain fans of the new look, the analysts are somewhat apprehensive regarding the high discounting on the new higher quality products, as this should lead to margin issues this quarter.
Guess? (Buy rated)
Continues to add the higher priced (and higher margin) Marciano product into its stores, and consumers seem to be accepting it. This should drive an increased profit margin this quarter.
Urban Outfitters (Buy rated)
"Remains committed to providing higher margin product in its stores and online, which allows for continued higher margins for the brand,” the note explained. “A year into this endeavor, consumers are noticing the higher AUR,” but even though some are questioning the pricing policy, sales seem not to be falling. The analysts believe profits will rise this quarter.
New York & Co. (Buy rated)
Shifting its focus towards the new Jennifer Hudson Soho Jean collection, and away from its successful Eva Mendes collection. The firm believes “this marketing strategy will emulate the success that the Eva Mendes collection continues to have with consumers, and so should augment sales.”
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.