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!
GameStop's stock plunged more than 10 percent on Friday as investors were clearly disappointed with the company's reported 10.6 percent decline in second-quarter comparable sales. As such, the bearish thesis gained validity and the bullish case is now put into question.
However, according to Bloomberg Gadfly's Shelly Banjo, GameStop's strategy of diversifying its business beyond physical games is actually showing signs of early success.
GameStop said that it plans on generating half of its total operating earnings from initiatives outside of physical games by 2020. For example, the company is focusing on exclusive video game related collectibles and selling products through its 72 Simply Mac and 1,400 Spring Mobile specialty stores.
FREE REPORT: How To Learn Options Trading Fast
In this special report, you will learn the four best strategies for trading options, how to stay safe as a complete beginner, a 411% trade case study, PLUS how to access two new potential winning options trades starting today.Claim Your Free Report Here.
Banjo noted that during the second quarter, sales from mobile and consumer electronic initiatives rose to 13 percent of its total revenue, up from 10 percent in the prior quarter. In addition, revenue from the technology segment rose 55 percent year-over-year and contributed 24 percent of its overall earnings.
There is however one problem. Global phone sales are expected to fall 7.7 percent to around $95 billion in the second quarter, and the average selling price dipped 8 percent from a year ago. As such, it would be wise for management to "reconsider how big of a phone-seller it wants to become."
Banjo noted that GameStop may be aware of the trend, as management suggested that it could be a partner with major film studies and also go out and purchase new retail businesses.
"The company realizes its legacy business is in decline and is actually doing something about it," Banjo wrote.
At time of writing, GameStop was trading at $28.78, down 10.56 percent with about an hour left of trading in the regular session.
Full ratings data available on Benzinga Pro.
Do you have ideas for articles/interviews you'd like to see more of on Benzinga? Please email feedback@benzinga.com with your best article ideas. One person will be randomly selected to win a $20 Amazon gift card!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.