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.
Shares of Tesla Motors Inc (NASDAQ: TSLA) are on track to close 2016 lower by more than 10 percent, but analysts at Baird are now calling the electric auto maker its top 2017 pick.
Baird's Ben Kallo commented in a report Friday that Tesla's ramp of its Model 3 car and Energy products are likely to exceed expectations in the coming year and the opportunity to investors at its current stock price isn't properly reflected.
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!
Energy Products
Specifically, Kallo believes Tesla's battery sales are accelerating and should see additional benefits from a production ramp which will coincide with the launch of the Model 3 sedan.
In addition, Tesla's Powerwall 2 offers consumers "a competitive pricing advantage per kWh and should allow [Tesla] to gain market share within the home and small business segments." By some estimates, the Powerwall 2 has an approximate 30 percent advantage in terms of cost per total kWh over its closest competitor.
In fact, the payback period for the purchase of the technology could be as low as just 6.5 years in a region like Southern California or 8.7 years in Australia which is still cheaper than the best grid-only electricity generation solution.
Model 3 Optimism
Kallo further suggested Tesla's Model 3 sedan will outperform all of its competitors as it provides a fully electric car at a competitive price.
Meanwhile, the Model S sedan is a luxury vehicle that provides triple the range of its closest competitors and still holds the advantage of being the first fully electric and luxury car model to hit the market.
The Model X SUV's roll-out is expected to increase Tesla's brand value "significantly" and its long-term trajectory remains intact with initial positive responses from consumers.
Finally, the analyst highlighted that the price of lithium-ion batteries, one of the most important input costs for Tesla's business, is expected to decline by 10 percent annually through 2020 followed by a 7 percent annual reduction next decade.
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.