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.
Standpoint' Ronnie Moas was a guest on CNBC to discuss why he has no plans to change his Sell rating on Tesla Motors Inc (NASDAQ: TSLA).
Moas noted his Sell rating dates back to April 7 when shares of Tesla were trading north of $260 per share. At that time, he placed a $180 price target on the stock.
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He did, however, state a change in rating may be justified if Tesla's stock were to re-test its 52-week low of $141.05.
Moas said Tesla's shareholders should feel "upset" following the company's announcement it intends to acquire SolarCity Corp (NASDAQ: SCTY).
"If it wasn't this news, it would have been something else that would bring Tesla down," Moas added. "This was a bail-out of a company that [Tesla's CEO and SolarCity's Chairman Elon] Musk owns 20 percent of. SolarCity was on life support 24 hours ago."
Moas pointed out SolarCity is holding $6 billion worth of debt and liabilities so the deal "just doesn't make any sense."
Meanwhile, several analysts on Wall Street are calling for Tesla's stock to rise to $300 per share. This figure implies a similar valuation as General Motors Company (NYSE: GM) but the Detroit-based automaker makes $10 billion in profit while Tesla can't even claim $10 billion in revenue.
Musk did concede it's possible Tesla's stock could greatly appreciate over the next 10 years, but it's too expensive today.
Bottom line, Moas said he is immense respect for Musk but there are hundreds of stocks that could double over the next 10 years "without the downside risk that Tesla has."
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.