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!
Rationale For Outperformance
Analyst Robert "Bob" Peck premised on his optimistic stance of seeing a 3Q beat on a couple of factors:
- Fitbit is into the habit of guiding conservatively.
- The guidance did not take into account new unit shipments (especially of Flex 2 and Charge 2) in the third quarter, although these were available at retail.
Shares Down On ...
- Fears that Charge might not be selling well.
- Aetna Inc (NYSE: AET) is subsiding Apple Inc. (NASDAQ: AAPL) Watch, Fitbit's rival product.
- Results of a study suggest trackers may not help users lose weight.
Want Private Access to Benzinga Analyst?
Check out the latest strategies our team of experts are using every week so that you can always adapt to the market like the pros!—Get FULL Access to This Week's Webinar Here.
Investor Focus
SunTrust is of the view that investors will vest their focus on impact, if any, from low end and high end competition, demand for new products, development of corporate, wellness/health insurance opportunities, the potential ramp of services revenues, litigation status and the uses of the balance sheet.
Maintaining Estimates
SunTrust maintained its third-quarter estimates of 5 million units in volumes, $97 of average selling price, $500 million in revenues and $75 million in EBITDA. The firm also believes the company is well positioned for strong revenue growth and margin expansion in the second half.
The firm has a Buy rating on the shares of Fitbit and a $17 price target, representing 1.2 times its 2017 revenues and 6.5 times its EBITDA. The firm termed the valuation as attractive. Overall, SunTrust remains optimistic on Fitbit.
At time of writing, Fitbit's shares were up 0.69 percent at $13.17.
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.