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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First, Pandora is better positioned to perform in the streaming music space following a $480 million strategic investment from Sirius XM Holdings Inc. (NASDAQ:SIRI). Sirius also gains three board seats, including the chairman title, which implies it has a strong desire for Pandora to succeed.
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Second, Pandora's opportunity in the advertising space has notable upside since it accounts for 10 percent of the entire radio listening market but only a 2-percent share of local radio advertising. By closing the gap Pandora could boost its EBITDA by nearly $500 million and the SiriusXM team has the relevant experience to help in this area.
The analyst acknowledged that even if his bullish stance doesn't play out, Pandora's cost-cutting initiatives minimizes the stock's risk. SiriusXM is "excellent" at cost controlling and could push Pandora to lower operating expenses and generate nearly $300 million of incremental EBITDA.
Bottom line, assuming even "modest" success in radio and subscription by 2020 alone derives the analyst's $11 price target.
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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.