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.
The big hotel M&A news to start this week seems to already be having an impact on other gaming & leisure stocks. Starwood Hotels & Resorts Worldwide Inc (NYSE: HOT) is up 7.8 percent after an unsolicited bid to buy the company from a Chinese consortium led by Anabang Insurance. The buyout price of $76/share tops the previous Starwood buyout bid of $72.08 by Marriott International Inc (NASDAQ: MAR).
Elsewhere, Anbang has agreed to purchase Strategic Hotels & Resorts from Blackstone Group LP (NYSE: BX) for $6.5 billion. Blackstone turned a quick $500 million profit on the asset, which it had only acquired back in December for $6.0 billion, including debt.
The Bejing-based Anbang has been on a hotel buying spree in the past year or so. The company purchased the Waldorf Astoria in New York last year for $1.95 billion.
The pair of M&A deals seems to have triggered some buying in other segments of gaming & leisure as well. Macau casino operators Melco Crown Entertainment Ltd (ADR) (NASDAQ: MPEL), Las Vegas Sands Corp (NYSE: LVS) and MGM Resorts International (NYSE: MGM) are all up more than 1.5 percent in Monday’s session.
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In addition, Norwegian Cruise Line Holdings Ltd (NASDAQ: NCLH) and Carnival Corp (NYSE: CCL) are both up modestly in Monday trading.
Disclosure: the author is long Melco Crown Entertainment.
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.
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