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.
America’s self-medication preferences may be making a major long-term shift. In celebration of 4/20, Cowen analyst Vivien Azer took a look at what could be a coming cyclical upswing for marijuana and a cyclical downswing for alcohol. According to Azer, what’s good for the marijuana business is bad for the alcohol business.
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“Of the 5 long-term alcohol cycles that we have seen in terms of per capita alcohol consumption since alcohol prohibition was lifted (and cannabis prohibition was implemented), the latter 3, since 1980, show a notable inverse correlation with cannabis trial and use,” Azer explained.
Recent data suggests the United States may be entering a sixth cycle in which marijuana becomes the preferred option for many Americans.
Azer said cycles in vice markets are often lead by younger Americans. In the past seven years, alcohol use among Americans aged 18–25 is down 2.5 percent, while marijuana use in the same age group is up 4.6 percent.
For traders who want to trade the shift from booze to weed, Cowen’s preferred marijuana plays are Kush Bottles Inc (OTC:KSHB), CANOPY GROWTH CORP COM NPV (OTC:TWMJF) and Turning Point Brands Inc (NYSE:TPB).
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In addition, Cowen remains bullish on best-in-class beer stock Constellation Brands, Inc. (NYSE:STZ) but has downgraded rival Molson Coors Brewing Co (NYSE:TAP) to Market Perform.
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T-Mobile's John Legere + 4/20 = Pot Shots At Verizon27% 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.