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 next wave of Auto-Tech investing is unlikely to be confined to auto suppliers, and should rather expand to certain automakers, Citi’s Itay Michaeli mentioned. While bears believe that Ford Motor Company (NYSE: F) and General Motors Company (NYSE: GM) have “squeezed every dollar” out of North America. The analyst pointed out, however, that:
- Car segments do not appear significantly profitable, with most of the profits being generated by trucks, which is “a segment that we also happen to regard as a strategic “moat” that’s less susceptible to transformation”
- Both Ford and General Motors seem to be underpenetrated in major states, such as California and New York
- Although their aftermarket businesses are highly profitable, they are addressing less than 50 percent of the market
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!
Michaeli commented that this does not appear to be peak potential.
GM Is A Looming Transformation Story
General Motors is likely to become a transformation story based on the potential long-term shift from low-margin cars to high-margin mobility, “with trucks (majority of profits) staying as the anchor,” Michaeli said. He believes the company’s key assets, namely Bolt and SuperCruise, would be able to enhance Lyft’s driver recruitment proposition, “thereby giving GM a direct hand in building the network.”
“This could position GM for more lucrative economics in the driverless era than what’s commonly perceived for “OEMs”. Even contract manufacturing could be a better proposition than today’s small car returns,” the Citi report stated.
Michaeli has Neutral rating for Ford, with a price target of $15. The analyst maintained a Buy rating for General Motors, while raising the price target from $44 to $50.
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.