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.
Following the initial post-Brexit scare, every investor was asking the same question: How will the Brexit impact my stocks? Cantor Fitzgerald analyst Youssef Squali recently went through all of the Internet stocks under the firm’s coverage and adjusted earnings estimates and price targets that were directly impacted by the Brexit vote.
“We note that these adjustments reflect F/X movement only, and not the potential for a deterioration in UK/EU economies from Brexit,” Squali explained.
Estimate Changes
Here’s a summary of the estimates that were changed:
- Cantor estimates that Priceline Group Inc (NASDAQ: PCLN) will take a $0.24 F/X EPS hit in Q2 and a $1.02 hit in the second half of the year. The firm has lowered its price target from $1,525 to $1,510.
- Cantor has lowered its 2016 revenue/EPS estimates for Netflix, Inc. (NASDAQ: NFLX) from $8.752 billion/$0.41 to $8.717 billion/$0.37. The firm has lowered its price target from $140 to $130.
- Cantor has lowered its 2016 revenue/EPS estimates for Shutterstock Inc (NYSE: SSTK) from $507.8 million/$1.39 to $500.9 million/$1.37. The firm maintains its $50 price target.
- Cantor estimates that Tripadvisor Inc (NASDAQ: TRIP) will take a $0.04 F/X/ EPS hit in the second half of 2016 and has lowered its price target from $74 to $70.
A Few Favorites
In light of the Brexit vote, Squali recommends Internet investors focus on Buy-rated Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL), Facebook Inc (NASDAQ: FB) and Amazon.com, Inc. (NASDAQ: AMZN).
Cantor’s top small- and mid-cap Internet plays are Shutterstock and Yelp Inc (NYSE: YELP).
Disclosure: The author holds no position in the stocks mentioned.
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.
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!