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.
Hedge fund guru David Einhorn has nothing but positive reviews for Yelp Inc (NYSE:YELP) and its stock. Back on May 2, 2016, Einhorn disclosed that Greenlight Capital had taken a huge new position in Yelp.
“We purchased Yelp at an average price of $21.16,” Einhorn said in a letter to investors.
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“The stock has suffered due to missed expectations and anxiety about an upcoming negative documentary,“ he said at the time.
By early October, Yelp shares had already roughly doubled from Einhorn’s buy price. SEC filings revealed Einhorn began selling Yelp shares shortly after he bought them, cashing out nearly 334,000 shares in Q2 2016 and another 600,000 shares in Q3 2016.
See Also: Give Yelp A Bullish Review In 2017
Even after Yelp’s big post-earnings selloff last week, the stock remains up 66 percent since May 1, 2016. Despite a Q4 earnings beat on in-line revenue, Yelp’s guidance fell short of the market’s expectations.
It wouldn’t be surprising to see if Einhorn continued to sell Yelp with the stock near 52-week highs in the days leading up to the earnings report. Greenlight Capital is expected to file its Q4 2016 13F disclosures sometime in the coming days.
As of the end of Q3 2016, Greenlight’s three largest holdings were Apple Inc. (NASDAQ:AAPL), General Motors Company (NYSE:GM) and AerCap Holdings N.V. (NYSE:AER).
Image credit: Nan Palmero, Flickr
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.