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 shock waves from Hurricane Harvey — which has caused a diaspora of great magnitude and the deaths of at least 30 people — are continuing to reverberate in the market.
Oil refineries have halted operations, prompting surges in national gas prices. Vehicles are underwater and insurance firms are shelling out. Restaurants have shuttered, forfeiting revenue and bracing for enduring damages.
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Stephens analyst Will Slabaugh calculated the impact of 10-day closures for dining chains within a 60-mile radius of Houston, and the results were bleak. In most cases, they justified Slabaugh’s lowering of same-store sales and earnings-per-share estimates.
Here are his findings:
- BJ’s Restaurants, Inc. (NASDAQ:BJRI): With six stores in and 3.1-percent exposure to Houston, 10-day revenue loss is $936,986. Slabaugh adjusted his quarterly SSS estimate from -0.8 percent to -1.2 percent and EPS from $0.25 to $0.23.
- Brinker International, Inc. (NYSE:EAT): With 22 stores in and 1.3-percent exposure to Houston, 10-day revenue loss is about $2.3 million. Slabaugh adjusted his quarterly SSS estimate for Chili’s from -1.3 percent to -1.6 percent and EPS from $0.43 to $0.42.
- Buffalo Wild Wings (NASDAQ:BWLD): With 24 stores in and 1.9-percent exposure to Houston, 10-day revenue loss is about $2.2 million. Slabaugh adjusted his quarterly SSS estimate from -2 percent to -2.4 percent and EPS from $0.93 to $0.87.
- Cheesecake Factory Inc (NASDAQ:CAKE): With six stores in and 2.7-percent exposure to Houston, 10-day revenue loss is about $1.8 million. Slabaugh adjusted his quarterly SSS estimate from -1.3 percent to -1.6 percent and EPS from $0.64 to $0.62.
- Chuy’s Holdings Inc (NASDAQ:CHUY): With nine stores in and 10.6-percent exposure to Houston, 10-day revenue loss is about $1.1 million. Slabaugh adjusted his quarterly SSS estimate from -1.5 percent to -2.7 percent and EPS from $0.28 to $0.21.
- Darden Restaurants, Inc. (NYSE:DRI): With 44 stores in and 2.6-percent exposure to Houston, 10-day revenue loss is about $5.4 million. Slabaugh adjusted his quarterly SSS estimate for Olive Garden from 2.5 percent to 2 percent and EPS from $1.07 to $1.
- Del Frisco’s Restaurant Group Inc (NASDAQ:DFRG): With two stores in and 5.4-percent exposure to Houston, 10-day revenue loss is about $515,000. Slabaugh adjusted his quarterly EPS estimate from a loss of $0.02 to a loss of $0.03.
- Sonic Corporation (NASDAQ:SONC): With about 50 stores in and 1.3-percent exposure to Houston, 10-day revenue loss is about $2.2 million. Slabaugh adjusted his quarterly SSS estimate from -3 percent to -3.2 percent with an unchanged EPS of $0.42.
- Texas Roadhouse Inc (NASDAQ:TXRH): With 13 stores in and 2.4-percent exposure to Houston, 10-day revenue loss is about $1.7 million. Slabaugh adjusted his quarterly SSS estimate from 4.5 percent to 4.2 percent and EPS from $0.45 to $0.44.
- Wingstop Inc (NASDAQ:WING): With about 43 stores in and 3.7-percent exposure to Houston, 10-day revenue loss is about $1.3 million. Slabaugh adjusted his quarterly SSS estimate from 2.5 percent to 2.1 percent with an unchanged EPS of $0.15.
- Zoe’s Kitchen Inc (NYSE:ZOES): With 11 stores in and 4.8 percent exposure to Houston, 10-day revenue loss is $452,055. Slabaugh adjusted his quarterly SSS estimate from flat to -0.6 percent and EPS from $0.02 to $0.01.
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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.