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 recent share pullback likely stems from disappointing news related to the push-out of the active safety revenue outlook, slowing active safety sales headline, and lower than expected 2017 guidance,” Wells Fargo’s David Lim said, upgrading the rating on Autoliv Inc. (NYSE:ALV) to Outperform.
The analyst believes that fundamentally, the stock has reset and it's now up to management to deliver. Following the pullback, the risk/reward is now favorable, given that the company’s long-term story is intact.
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!
On the other hand, Lim said Autoliv’s passive safety wins had been strong, while active safety was expected to play out “eventually.”
Stating that passive safety continued to gain momentum, the analyst noted that given the recent strength in wins for this segment, management expects the shortfall in active safety, in terms of the 2019 target, to be more than offset.
Related Link: Autoliv Shows Advanced Positioning and ADAS Horizon Sensors in the Automotive Market at 2017 CES
Meet Or Beat Targets
In fact, Autoliv expressed confidence that it could exceed its total revenue target of $12 billion by 2019.
Autoliv expects passive safety revenues at $9 billion by 2019. The analyst believes that assuming 15 percent incremental margin for this business and 6 percent margin for electronics, 2019 earnings could meet or exceed $8.70.
“Further, the balance sheet provides mgmt with plenty of optionality including acquisitions and share buybacks, in our view,” Lim said.
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.