December 15, 2015 10:45 AM | 1 min read |
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.
- Shares of Amazon.com, Inc. (NASDAQ: AMZN) gained more than 110 percent throughout 2015.
- Rob Sanderson of MKM Partners initiated coverage of Amazon with a Buy rating and $800 price target.
- Sanderson added that the stock could grow into a $1,300 stock over a three to four-year timeframe.
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.
Shares of Amazon more than doubled throughout 2015 and have gained nearly 300 percent over the past five-years. Investors thinking that the stock is set to lose momentum may be mistaken, at least according to Rob Sanderson of MKM Partners.In a report published Tuesday, Sanderson initiated coverage of Amazon with a Buy rating and $800 price target that will grow into a $1,300 stock within three to four years.According to Sanderson, Amazon is the "dominant player" within two of the "largest secular growth opportunities" which are: 1) global eCommerce, and 2) cloud computing.Related Link:
Is Amazon Running A Secret Shipping Business With Major Disruptive Potential?Sanderson expanded that Amazon's continued investments in its eCommerce segment "mask the earnings power potential" but the business is "structurally more efficient" and should deliver long-term margins that are better than traditional retails. On the other hand, Amazon's cloud business has "broken out from a margin perspective" given its 1,660 basis points year over year gain while the topline growth accelerated 78 percent last quarter."We consider Amazon a core holding for growth investors," Sanderson argued.Bottom line, Amazon's management team "built remarkable trust" among investors and the investment community "clearly believes" in the longer-term opportunity. Looking forward to the long-term, the analyst sees Amazon's net profit surging to $20 billion which justifies the longer-term $1,300 price target.© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.