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.
Shares of F5 Networks, Inc. (NASDAQ: FFIV) surged Tuesday on reports of a possible sale, but fell Wednesday possibly on profit taking. Trip Chowdhry of Global Equities Research said investors should sell their shares into this "false strength."
In a note, Chowdhry said the market is moving away from of F5 Networks, and the company has "zero play in SuperCloud computing" platforms such as AWS from Amazon.com, Inc. (NASDAQ: AMZN) and Azure from Microsoft Corporation (NASDAQ: MSFT).
The analyst noted that Verizon Communications Inc. (NYSE: VZ) is putting up its 48 data centers for sale, Centurylink Inc (NYSE: CTL) is "trying very hard to sell its co-location center" and Rackspace Hosting, Inc. (NYSE: RAX) is struggling.
"We have not come across a single customer who is increasing their investments in Enterprise Data Centers. This is a secular negative for FFIV," Chowdhry wrote.
Commenting on the potential M&A, Chowdhry said it is highly unlikely that there will be multiple bidders for F5, which is a "declining asset business."
"Market is moving away from FFIV, and is not coming back. FFIV is in secular downshift and recovery is impossible," Chowdhry added.
At time of writing, shares of F5 Networks were down 3.06 percent to $120.15.
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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