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.
August delivered some mixed numbers for retailers Buckle Inc (NYSE: BKE), Gap Inc (NYSE: GPS) and L Brands Inc (NYSE: LB). In a new report, Wedbush analyst Morry Brown discussed August sales numbers for the three retailers.
In terms of same-store sales (SSS), L Brands came in slightly ahead of expectations for the month, while Gap fell slightly below expectations. Buckle, on the other hand, reported a -14.8 percent comp in August, well short of consensus expectations of -8.8 percent.
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“We believe the shift in fashion away from embellishment-heavy items (higher AUR) toward simple styles (lower AUR) will continue to pressure top and bottom line results,” Brown said of Buckle.
In light of the disappointing numbers, Wedbush dialed back its 2016/2017/2018 EPS estimates for Buckle from $2.45/$2.46/$2.47 to $2.33/$2.32/$2.33. In addition, the firm lowered its price target for the stock from $22 to $21.
Brown also noted that the new price target for Buckle represents only a 9x multiple on forward 24-month EPS projections because of the company’s slowing sales trends and margin uncertainty.
Wedbush maintains its $25 price target for Gap and its $65 price target for L Brands and did not adjust earnings estimates through 2018. The firm has a Neutral rating on all three stocks.
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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.