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.
Over the past few weeks, U.S. retailers have been boasting about how successful their holiday shopping season has been. Many investors look to stores' success over the holiday period as a good indicator as to whether or not the firm's final quarter will be a profitable one, but now that the holiday hype has died down, many companies must worry about another issue— returns.
Returns On The Rise
ENTER TO WIN $500 IN STOCK OR CRYPTO
Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!
Holiday returns are something to be expected, as sizing mistakes and unwanted gifts are brought back in the days following Christmas. However, many firms say returns put enormous strain on their business, often costing them a sizable portion of their revenue.
In 2014, Americans returned $284 billion worth of merchandise, and that figure is expected to rise this year, with around 20 percent of that number being returned following the holiday season.
Online Retailers Struggle
It's difficult to pin down the exact cost of returns to retailers as the majority don't report that information. However, electronics retailer Best Buy (NYSE: BBY) said that returned, damaged or replaced goods cost roughly $400 million per year. That figure is likely much higher for online retailers like Amazon.com, Inc. (NASDAQ: AMZN) as customers don't have the ability to try on or see the products before they arrive.
Fraudulent Returns
However, while brick and mortar stores may have a leg up when it comes to mistaken purchases, they also have to deal with fraudulent returns.
The National Retail Federation estimated that fraudulent returns in the US will increase to $2.2 billion dollars, up from $1.9 billion in 2014. More than 90 percent of those fraudulent transactions occur when someone returns a stolen item. This is especially prevalent during the holiday season as many consumers don't have a receipt for items they received as a gift.
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.