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.
- Short interest in the leading semiconductor stocks was mixed again in early December.
- Short sellers piled on Maxim Integrated Products in particular during that time.
- Yet the number of Analog Devices and NXP Semiconductors shares short dropped sharply by mid-month.
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Analog Devices
Though short interest in this integrated circuits maker jumped more than 53 percent during the previous period, in early December the number of shares sold short shrank more than 23 percent to about 6.08 million. That was about 2 percent of the float. The days to cover dropped to less than two.Analog Devices has a market capitalization of more than $17 billion, with a dividend yield near 2.8 percent. Its operating margin is better than the industry average, but Apple inventory issues led to downgradeWant Private Access to Benzinga Analyst?
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Maxim Integrated Products
NXP Semiconductors
The 9.74 million shares short as of the middle of the month was down about 47 percent from the previous settlement date. It also was about 5 percent of the float of this Dutch company. The days to cover slipped to less than two, the lowest it has been since last March.The company benefits from its link to Apple Pay, which should bode well for 2016. The semiconductor manufacturer has a market cap of almost $20 billion. Its long-term EPS growth forecast is almost 25 percent, and the return on equity is more than 100 percent.All but two of the 25 surveyed analysts recommend buying shares, with 10 of them rating the stock at Strong Buy. They see plenty of room for shares to run, as their mean price target more than 19 percent higher than the current share price.The share price ended the two-week period more than 6 percent lower, though it has recovered a bit since. The stock has underperformed the broader markets and larger competitor Texas Instruments over the past six months.See also: The Top 20 Wall Street Analysts Of 2015And Others
The number of shares short in, Avago Technologies, Broadcom, Intel, Lam Research, NVIDIA and Texas Instruments grew modestly in the initial weeks of December.Short interest in KLA-Tencor and Xilinx was essentially flat, relative to the previous settlement date.Short sellers retreated somewhat from Linear Technology, Micron Technology, Qualcomm and Skyworks Solutions in the period, but especially from Applied Materials and Marvell Technology. The number of their shares short shrank by more than 11 percent.At the time of this writing, the author had no position in the mentioned equities.Keep up with all the latest breaking news and trading ideas by following us on Twitter.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.