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.
It could be another bumpy earnings season for Internet stocks. According to Pacific Crest analyst Evan Wilson, volatility will remain a key theme in the Internet space until market sentiment finally bottoms out.
“We are still searching for a sentiment bottom in Internet, but are getting closer as each earnings season demolishes another of the few remaining high-fliers in the comp group,” Wilson explained.
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Top Picks In The Space
Pacific Crest remains bullish on a handful of Internet names, but Wilson believes that investors should remain highly-selective in the space. He prefers non-user growth-dependent stocks such as Overweight-rated Criteo SA (ADR) (NASDAQ: CRTO), LinkedIn Corp (NYSE: LNKD) and Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL).
In addition to these three names, Yandex NV (NASDAQ: YNDX) is the only other Overweight rating in the firm's Internet coverage universe.
After last quarter’s disastrous report that nearly cut the stock’s market cap in half overnight, Wilson is calling for an earnings “beat and raise” from LinkedIn this quarter.
Sector-Weight Rated Stocks
The firm maintains Sector Weight ratings on the following Internet stocks heading into Q1 earnings season:
- Angie’s List Inc (NASDAQ: ANGI)
- Facebook Inc (NASDAQ: FB)
- GrubHub Inc (NYSE: GRUB)
- MaxPoint Interactive Inc (NYSE: MXPT)
- Twitter Inc (NYSE: TWTR)
- Yahoo! Inc. (NASDAQ: YHOO)
- Yelp Inc (NYSE: YELP)
- Zillow Group, Inc.-Class A (NASDAQ: ZG)
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.