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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Fresh Pizza And Gasoline
Bank of America's Daniel O'Hare initiated Casey's General Stores Inc (NASDAQ: CASY) at Buy with a $150.00 price objective after applauding Casey's relatively unique products compared to Amazon: gas and fresh pizza.
A Convenience Store Success Story
"Casey's has operated highly successful convenience stores (c-stores) for over four decades," said the analyst. The company has grown to become the ninth largest convenience store (c-store) operator and the fifth largest seller of pizza in the United States, according to O'Hare.
Fresh-made pizza accounts for about 70 percent of the company's total annual sales. The large exposure to gasoline and fresh pizza keep Casey's relatively unaffected by the Amazon invasion.
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Strong Fuel Growth
"We see support for above average fuel gross profit dollars," stated O'Hare. The analyst cited several drivers between his assumption:
- Improving backdrop for low and middle income consumers
- Outperformance of Casey's fuel gallon growth vs. total U.S. fuel supply
- Higher expected miles driven per consumer
- Successful fuel promotions including Pizza to Pump and Hy-Vee's Fuel Saver
- Higher renewable identification numbers (RINs) prices could lead to higher fuel margins from blending renewable fuel.
Additionally, since Casey's orders are only 7 percent online vs. Domino's Pizza, Inc. (NYSE: DPZ)'s 50 percent, there's significant room for a "mix-shift benefit to higher ticket online sales," according to O'Hare.
At time of writing, Casey's was seen trading slightly up by 0.54 percent on the day at $134.24.
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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.