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.
"To us, the burden of proof lies in the positive trending of cashflow growth, FCF dividend coverage and gearing. Leading indicators to watch include quarterly capex/opex intensity ($/boe), CFFO and cash break-evens," the analysts wrote.
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The analysts added that EU oil stocks are trading on a 13.5x 2018E P/E, which is "inexpensive" relative to the market. Nevertheless, there are some winners and losers in the space.
The analyst note has come at a bit of an inconvenient time, as European stocks closed lower on Wednesday, while the price of oil also tumbled after U.S. crude oil stockpiles rose by the largest amount on record dating back to 1982.
Winners And Losers
BP plc (ADR) (NYSE: BP), Royal Dutch Shell plc (ADR) (NYSE: RDS-A) (NYSE: RDS-B) and Statoil ASA(ADR) (NYSE: STO) are expected to outperform their peers by offering: 1) the greatest rate of change in cost reduction through technology and innovation, 2) upstream portfolios with an attractive risk to reward profile and 3) sufficient liquidity to invest in future growth.
Two of the analysts' top listed names, BP and Royal Dutch released their earnings report on Tuesday.
On the other hand, the analysts are Underweight on Eni SpA (ADR) (NYSE: E), Repsol Oil & Gas Canada Inc (USA) (NYSE: TLM) and OMV AG given their asset bases, which offer an inferior risk to reward profile and limited differentiation in cost reductions.
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.