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.
Spirit Airlines Incorporated (NASDAQ: SAVE) shares closed Monday's session up more than 3 percent as Credit Suisse analyst Julie Yates earlier upgraded the stock to Outperform.
Yates previously had a Neutral rating on shares of Spirit. The analyst's price target was raised from $44 to $55.
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Despite the more positive recommendation and price target, she reduced earnings estimates for Spirit across the board:
- FY16 EPS estimate lowered from $3.82 to $3.67;
- FY17 from $4.34 to $4.23; and
- FY18 from $5.64 to $5.47.
Yates said her target is now based on a 13x multiple to FY17 expected earnings.
"Even with higher fuel, we expect SAVE to grow earnings by 15% in 2017 which is unique among our coverage. Southwest Airlines Co (NYSE: LUV) is the other carrier where we see EPS growth in 2017 despite higher fuel. Both SAVE & LUV are overearning less than peers on low fuel, but for different reasons; SAVE's is from yield weakness resulting from competitor actions where LUV's is from hedging losses," Yates said.
Shares of Spirit closed Monday at $43.85, a price which suggested about 25 percent possible upside to the Credit Suisse price target.
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.