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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The brokerage had upgraded shares of Chubb last summer on the thesis that the merger with ACE would generate superior returns and with it an outperformance of the stock.
"With the stock now above $130, we believe our thesis has been priced in and consequently we see now as a good time for investors to take their foot off the gas a little," analyst Charles Sebaski wrote in a note.
The analyst said investors should wait for a better entry point given stock's 52-week outperformance both on an absolute (+25 percent) and relative basis (+7 percent) against the S&P 500 P&C Index.
That said, Sebaski still believes long-term investors should not sell the stock.
Sebaski raised his 2016 EPS estimate by $0.10 to $10.05 and forecast a 2017 EPS of $10.60. The analyst also hiked the price target on the stock by $2 to $136.
At the time of writing, shares of Chubb were almost flat on the day at $130.25.
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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.