Restoration Hardware Blows Shorts Out Of The Water After Q4 Report


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.


Restoration Hardware (NYSE:RH) shares are trading higher by $4.11 (11 percent) at $42.11 in Wednesday's session.

The rally is coming after the company reported Q4 adjusted EPS of $0.68, which didn't compare to the $0.05 estimate. Sales came in higher than expected by just over $100 million. The company forecasts Q1 sales to be up 16-20 percent.

The report has caught the 40 percent short interest in the issue completely off guard and shorts are scrambling to cover in today's session.

After a higher open, RH rallied to $44.00 before reversing course, which matches its May 2, 2016 high. The ensuing decline has taken the issue to $41.57 and is now trying to remain in the $42.00 handle.


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.


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