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.
- Bank of America Corp (NYSE: BAC) shares are down more than 12 percent year-to-date, despite having peaked at $18.45 on July 22.
- Morgan Stanley’s Betsy L. Graseck maintained an Overweight rating on the company, with a price target of $21.
- The company is poised for robust revenue growth in 2016-2017, even if rates remain flat, Graseck said.
Analyst Betsy Graseck mentioned that Bank of America’s Asian revenue skew is low at 4 percent, while its revenues from the US are a significant 88 percent.
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Higher rates are bound to have a positive impact on Bank of America. Graseck further said that even if the rates are not hiked, the company is likely to record robust revenue growth driven by accelerating loan growth and strong fee growth.
“Accelerating loan growth (from -1% a qtr in 2014 to +1% a qtr in 2016 / 17) coupled with strong fee growth (4-7% y/y in 2016-17) alone should take revenues up 3-5% y/y in 2016-17 (i.e. without rising rates),” Graseck wrote.
Bank of America continues to take steps to keep its core expenses flat, which should drive positive operating leverage and lead to a further reduction in the company’s core expense ratio, the Morgan Stanley report said.
Graseck added that while Bank of America is working hard to boost its ROA, high op risk may restrict its ability to translate it into increased ROTCE.
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.