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.
The monthly credit card figures for November are scheduled to be reported on Thursday. “We expect to see mostly higher credit card delinquencies and net charge-offs (NCOs), in line with seasonal trends,” DA Davidson’s Arren Cyganovich said in a report.
Cyganovich added that loan growth is likely to have continued to be “resilient” and projected solid year-over-year growth rates, similar to what was reported in October.
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American Express
D.A. Davidson has a Neutral rating on American Express Company (NYSE: AXP).
Cyganovich expects the company’s U.S. card NCOs to have been flat at 1.6 percent on a month-on-month basis in November. The Master Trust 31–60 day delinquencies declined 9.9 percent in the same period five months back, “but there appears to be noise from balances in that month.”
The 30+ day delinquency rate estimate is at 1.1 percent, flat month-on-month. U.S. card loan growth is expected to have grown 12 percent pro forma for sold loans to $46.5 billion in November. The analyst projected Q4 2016 global credit card NCO rate at 1.6 percent, down from 1.7 percent in the prior quarter.
Capital One Financial
D.A. Davidson has a Buy rating on Capital One Financial Corp. (NYSE: COF).
Cyganovich expects the company’s U.S. card NCOs to have risen by 32 basis points on a month-on-month basis in November to 4.63 percent, with a 7 percent increase in master trust late-stage delinquencies in October and lower expected recoveries likely offsetting an expected lower roll rate to charge-off.
The analyst estimated a 3 basis points month-on-month increase in 30+ day delinquencies to 3.94 percent. Loan growth is expected to have remained strong, at 10.5 percent year-over-year to $93.6 billion.
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Cyganovich projected Q4 2016 U.S. card NCO rate at 4.55 percent, 3.74 percent in the prior quarter.
Discover Financial
D.A. Davidson has a Buy rating on Discover Financial Services (NYSE: DFS).
Cyganovich expects the company’s NCOs to have risen by 10 basis points on a month-on-month basis in November to 2.5 percent. Although late stage delinquencies rose 1 percent in October, this is offset by a lower roll rate to charge-off.
The 30-day delinquency rate estimate is at 2.0 percent, flat month-on-month. Loan growth is projected at 4.5 percent year-over-year to $59.0 billion. The analyst projected Q4 2016 NCO of 2.50 percent, versus 2.13 percent in the prior quarter.
Synchrony Financial
D.A. Davidson has a Buy rating on Synchrony Financial (NYSE: SYF).
The company’s Master Trust represents 19 percent of its card portfolio, Cyganovich noted. He estimated a 65 basis points month-on-month rise in Master Trust NCOs to 5.19 percent, driven by 10 percent growth in late-stage delinquencies and higher roll to charge-off rate, although this was mitigated by a slightly higher recovery rate.
The 30-day delinquency rate estimate is at 3.23 percent, up 9 basis points month-on-month. The analyst projected Q4 2016 managed NCO rate at 4.60 percent, versus 4.38 percent in the prior quarter.
At Last Check
- American Express shares were up 0.23 percent at $73.75.
- Shares of Capital One were down 0.19 percent at $89.25.
- Discover Financial shares were up 0.46 percent at $72.01.
- Shares of Synchrony were up 0.111 percent at $35.98.
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.