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.
Whereas Wal-Mart Stores, Inc. (NYSE: WMT) disappointed with its earnings on Tuesday, Home Depot Inc (NYSE: HD) continued with what is now a tradition with the company and posted yet another earnings beat.
Brian Nagel, Oppenheimer & Company senior equity research, was on CNBC to weigh in Home Depot earnings, share his outlook for the stock and his expectations from Lowe's Companies, Inc. (NYSE: LOW) earnings on Wednesday.
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Very Good Numbers
"It's very much an expected report, a very good report," Ngael began. "But, I think, the key here is just the conversation I have been having with our clients on Home Depot over the past several weeks or so, there is very much a view that sales could be soft here and what we are seeing in these numbers, it's that they are actually quite good. I think, the real key number here is the 5.7 percent domestic comp which is again a very good number."
Stock Will Continue To Grind Higher
On what impact will these earnings have on Home Depot's stock, Nagel said, "I think, as investors digest this report, they are going to come away with the view that look this is another very solid announcement from a very solid company that's well positioned. And, I think, over time the stock continues to grind higher."
Expectations From Lowe's
Nagel was asked what kind of numbers he expects Lowe's to declare on Wednesday. He replied, "[Typically] what we have seen with Lowe's and what I expect. In fact, I put out a report to our clients yesterday saying this, [is that] Lowe's will be good, but not as good as Home Depot and that's been a trend for a while. Home Depot continue to outcomp Lowe's and I don't see any reason why that's going to change here in this quarter."
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.