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.
GrubHub Inc (NYSE:GRUB) reported its second-quarter earnings on Thursday. EPS was in-line with the Street’s estimates and sales came in slightly ahead, but gross margins were a disappointment to many investors.
The stock jumped on Friday, trading up over 9 percent to over the $53 level.
Following the report, Credit Suisse analyst Paul Bieber reiterated an Outperform rating on the stock and upped his price target from $48 to $50, noting that “the mixed results were overshadowed by the announced partnership between (NYSE:YELP)].”
GrubHub bought Eat24, a notable competitor in the food delivery business, from Yelp for $288 million. Yelp will also facilitate food orders on GrubHub through its platform.
Bieber believes Eat24 and other businesses snatched up by GrubHub can generate gross food sales, revenue and EBITDA of $866 million, $130 million and $19-$52 million in 2018.
Bieber noted that his estimates do not yet include these gains, indicating strong further upside potential from his price target.
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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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