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.
Midway through trading Wednesday, the Dow traded down 0.18 percent to 18,499.60 while the NASDAQ declined 0.45 percent to 5,201.87. The S&P also fell, dropping 0.27 percent to 2,175.88.
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Leading and Lagging Sectors
On Wednesday, the non-cyclical consumer goods & services sector proved to be a source of strength for the market.
In trading on Wednesday, energy shares slipped by 0.68 percent. Meanwhile, top losers in the sector included SunPower Corporation (NASDAQ: SPWR), down 31 percent, and Tidewater Inc. (NYSE: TDW), down 21 percent.
Top Headline
Michael Kors Holdings Ltd (NYSE: KORS) reported better-than-expected earnings and revenue for the first quarter. However, the company offered a soft outlook for the second quarter and fiscal year 2017.
The global apparel retailer's net income was $147.1 million, or $0.83 a share, in the first quarter. On an adjusted basis, its net income would have been $156.0 million, or $0.88 a share. This was way ahead of the Street analysts' estimate of $0.74 a share.
Michael Kors' total revenue rose modestly by 0.2 percent from $986.0 million to $987.9 million surprising the Street, which was predicting a year-over-year drop of 3.3 percent. On a constant currency basis, revenue was flat.
Moving ahead, the retailer expects EPS to be $0.84-$0.88 on revenues of $1.07-$1.085 billion for the second quarter. Street analysts' have consensus EPS estimate of $1.03 on $1.11 billion revenue.
Equities Trading UP
DXP Enterprises Inc (NASDAQ: DXPE) shares shot up 49 percent to $26.05 following Q2 results. DXP Enterprises reported Q2 earnings of $0.34 per share on revenue of $256.2 million.
Shares of Clean Energy Fuels Corp (NASDAQ: CLNE) got a boost, shooting up 19 percent to $3.45 after the company posted stronger-than-expected quarterly earnings.
Healthways, Inc. (NASDAQ: HWAY) shares were also up, gaining 17 percent to $21.16 as the company posted better-than-expected Q2 earnings.
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Equities Trading DOWN
SunPower Corporation (NASDAQ: SPWR) shares dropped 31 percent to $10.27 after the company posted a loss for its second quarter and issued a weak revenue forecast. Management expected a workforce reduction of about 15 percent totaling about 1,200 employees in the future and restructuring charges totaling $30-$45 million.
Shares of Myriad Genetics, Inc. (NASDAQ: MYGN) were down 33 percent to $19.78 after the company posted weaker-than-expected Q4 results and issued a downbeat guidance.
Gevo, Inc. (NASDAQ: GEVO) was down, falling around 26 percent to $0.562. Gevo reported a Q2 adjusted loss of $0.15 per share on revenue of $8.1 million.
Commodities
In commodity news, oil traded down 2.01 percent to $41.91 while gold traded up 0.42 percent to $1,352.30.
Silver traded up 2.07 percent Wednesday to $20.26, while copper rose 1.21 percent to $2.18.
Eurozone
European shares were mostly lower today. The eurozone’s STOXX 600 fell 0.20 percent, the Spanish Ibex Index declined 0.08 percent, while Italy’s FTSE MIB Index slipped 0.03 percent. Meanwhile the German DAX fell 0.39 percent, and the French CAC 40 slipped 0.36 percent, while U.K. shares rose 0.22 percent.
Economics
The MBA reported that its index of mortgage application activity rose 7.1 percent for the week ended August 5, 2016.
Job openings increased to 5.62 million openings in June, compared to 5.51 million in May according to Labor’s Job Openings and Labor Turnover Survey. However, economists were projecting job openings of 5.57 million.
U.S. crude supplies increased 1.05 million barrels in the week ended August 5, the U.S. Energy Information Administration reported. However, analysts were expecting a drop of 1.02 million barrels. Gasoline supplies slipped 2.81 million barrels, while distillate stockpiles dropped 1.96 million barrels last week.
The U.S. Treasury budget data for July will be released at 2:00 p.m. ET.
The Treasury is set to auction 10-year notes at 1:00 p.m. ET.
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.