27% profits every 20 days?
This is what Nic Chahine averages with his options 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.
Charles Bobrinskoy, vice chairman of Ariel Investments, was a guest on CNBC's "Squawk On The Street" to talk about finding value and attractive stocks that will continue to benefit under the current President-elect Donald Trump rally.
Bobrinskoy started off by explaining that investors often make the mistake of concluding a stock is expensive simply based on a comparison to what it was trading at a few months ago. For example, shares of Morgan Stanley (NYSE: MS) were trading below $25 per share earlier this year, yet it hit a new 52-week high of $44.04 on Friday. A lot has changed since the stock traded at its lows, including the authorization to oversee a dividend and share buyback hike.
Top 3 Picks
Bobrinskoy continued with his top three picks that will benefit under the Trump rally.
Top of the list is the private equity firm KKR & Co. L.P. (NYSE: KKR), which is a "wonderful business" and worth around $26.
Moving on, shares of BorgWarner Inc. (NYSE: BWA) are attractive, as a stronger economy implies consumers will continue buying cars at the current rate. In addition, the stock is trading at 12x earnings which is "just too cheap."
Finally, Zimmer Biomet Holdings Inc (NYSE: ZBH) concludes his top three picks. The company will continue to benefit as demand for orthopedic reconstructive products, especially hips and knees, continues to rise each year.27% profits every 20 days?
This is what Nic Chahine averages with his options 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.
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