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 competitive landscape within the retail coffee business is certainly set to intensify after JAB Holdings, the parent company of multiple coffee brands, acquired Panera Bread to build its retail presence across the U.S. Despite the competitive landscape, analysts at Deutsche Bank still see Starbucks Corporation (NASDAQ:SBUX) as a notable standout in the space.
Deutsche Bank's Brett Levy upgraded Starbucks' stock rating from Hold to Buy with a price target raised from $59 to $60, as the company has been "putting pieces in place to right its ship." Specifically, after a rough year which even included periods of turmoil, management has now shown same-store sales improvements in the U.S., refocused its operations and given the Street reason to now be optimistic.
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'Sales Can Cure Many Woes'
Levy argued that if Starbucks' continues to show improved same-store sales growth trends after March and April's results then shares will follow suit and outperform. After all, "sales can cure many woes," and the company's investments in its businesses coupled with "structural and strategic moves" supports a bullish stance.
"Starbucks remains a standout operator and performer that should separate itself from its peers through ongoing menu innovation, its technology initiatives, and a focusing on the in-store experience, in our opinion."
The analyst did, however, caution there are some factors that could put his bullish stance in jeopardy. Specifically:
- Same-store sales trends could remain below average levels.
- Sales slumps could put pressure on 2017 earnings and the long-term investment profile.
- The stock could re-rate to the lower.
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.