27% profits every 20 days?
This is what Nic Chahine averages with his options 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 AlarmCom Hldg Inc (NASDAQ: ALRM) have surged almost 50 percent year-to-date. Imperial Capital’s Jeff Kessler downgraded the rating for the company from Outperform to In-line, while maintaining a price target of $24.50. The analyst commented that the shares have surpassed the price target and reached a new 52-week high.
Analyst Jeff Kessler mentioned that Alarm.com continues to possess:
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- A “wide competitive moat”
- Benefits from macro-factors that are driving the home automation market
- Technology advantages, such as its 4G LTE capability with Verizon
- Robust international growth of its competitors
- Potential in mobile healthcare and other businesses over the next couple of years
- Industry-leading customer service and dealer training
“Nonetheless, the shares have risen to a level of fair valuation, in our view,” Kessler wrote. He added that the price target is now 2 percent below the current price.
End User Subscription Growth
Kessler highlighted that Alarm.com’s priorities in end user subscription growth, which has decelerated to low teens from mid-teens a year ago, is mainly due to:
- The company’s focus on getting more profitable upgraded from its existing customers, which contributed the majority of revenue growth
- The relatively slow growth of its largest client, Monitronics
- “The potential boost from its new burgeoning international business, which is beginning to reach critical mass”
27% profits every 20 days?
This is what Nic Chahine averages with his options 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.