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.
Equity markets tend to overreact to the potential for major political policy changes, but a new report by UBS analyst Steven Milunovich indicates that some of the biggest U.S. companies could be facing a real possibility of major tax bills if a Republican is elected president in 2016.
According to Shane Lieberman, Federal Affairs Manager in the U.S. Office of Public Policy for UBS Americas, companies with large hordes of cash overseas, such as Apple Inc. (NASDAQ: AAPL) and Alphabet Inc (NASDAQ; GOOGL) may have a lot more riding on the election than investors realize.
“Tax legislation is important to tech investors because (1) a lower tax rate incenting repatriation of overseas cash would be significant for companies such as Apple that have over 90% of cash outside the US—that cash can be returned to shareholders or reinvested in the business, and (2) the European Commission is questioning the tax rates in Europe of leading tech companies like Apple and Google,” Milunovich explains.
Related Link: New Apple Supplier Data Are Highly Correlated With Revenue
Lieberman tells Milunovich that repatriation legislation is unlikely in 2016, but the election of a Republican president would put the chances of 2017 repatriation legislation as high as 50 percent. Lieberman anticipates that any such legislation would likely include a high single-digit rate for liquid assets and lower rates for non-liquid assets.
Disclosure: the author holds no position in the stocks mentioned.
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.
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!