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    Thursday, October 4, 2018

    Stocks - r/Stocks Options Trading Thursday - Oct 04, 2018

    Stocks - r/Stocks Options Trading Thursday - Oct 04, 2018


    r/Stocks Options Trading Thursday - Oct 04, 2018

    Posted: 04 Oct 2018 04:35 AM PDT

    These stock options discussions run every Tuesday & Thursday.

    Feel free to talk about options you have or ask questions on options. But before you ask any question make sure you see the following links:

    If you have a basic question, for example "what is Theta," then google "investopedia theta" and click the investopedia article on it; do this for everything until you have a more in depth question or just want to share what you learned.

    See past & current daily discussions here. And use this link to see past stock options discussions here.

    submitted by /u/AutoModerator
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    Global stocks are dropping as US treasury yields are at the highest level since 2011

    Posted: 04 Oct 2018 04:56 AM PDT

    US Stocks

    • Global stocks are dropping this morning as US treasury yields continue to rally after the yield on the US 10-year hit the highest level since 2011 in yesterday's trading
    • US Federal Reserve Chairman Jerome Powell, during a presentation yesterday, suggested current US interest levels are nowhere near "neutral" -- this side comment is what helped fuel the sell-off in US treasuries
    • Bloomberg is reporting that Chinese spies were able to successfully hack 30 major US companies, including Amazon (AMZN) and Apple (AAPL), by placing tiny chips on server motherboards produced by Super Micro Computer (SCMI) in China
    • US stocks index futures are pointing to a positive open in NY with the Dow Jones minis +0.21% S&P500 minis +0.26% and Nasdaq 100 minis +0.27%
    • The VIX is little changed this morning and is currently at 11.78 after closing at 11.61 yesterday
    • EEM November 16 OTM Calls, SPY October 5 OTM Calls & Puts, Bank of America (BAC) October 5 OTM Calls and Apple (AAPL) October 5 OTM Calls are the most heavily traded options contracts in the US pre-market
    • US 10-Year Treasury Bonds are lower with yields up 2.84 basis points to 3.2097%
    • The US Treasury 2s-10s Spread has widened 1.61 basis points to 0.33%
    • WTI Crude is currently up 1.57% to USD$76.41/bbl with the Brent-WTI spread down USD$-1.44 to USD$9.79/bbl
    • Gold is currently little changed 0.12% to USD$1198.84/oz
    • Global oil prices are 4-year highs with WTI now up more than 4% this week alone

    Stocks Trending in the News

    • Bang & Olufsen (BO DC) shares are falling 3.4% at 140.60 krona after reporting 5mm krona for 1Q ebit, below expectations. Bang & Olufsen maintained full year guidance of 10% revenue growth at ebit margin 7-9% for full year. Bang & Olufsen is rated 'Neutral' in our European SMID-Cap Global Top Picks
    • Bilibili (BILI) closed 8% higher at $14.37 yesterday after Tencent (700 HK) said it would invest USD$ 300mm in the company. Tencent will hold roughly 12.3% of Bilibili after the transaction is complete. Bilibili came public in March and subsequently rose 70% since then. Tencent closed 2.4% lower in Hong Kong at HKD$308.40
    • CNOOC (883 HK) was downgraded at UBS to neutral from buy although the price target of HKD$16.60 was maintained. CNOOC has risen 38% year-to-date and UBS sees the stock as fairly valued after the rise given the 27% increase in Brent crude this year. CNOOC closed 3.5% lower at HKD$1504. CNOOC is rated "Top Buy' in our China All-Cap Global Top Picks.
    • Danske Bank (DANSKE SS) reported that the US Justice Department has launched a money laundering investigation into its Estonian unit. The investigation joins those happening in Estonia and Denmark into Danske Bank's movement of cash through Estonia. Danske is trading 3% lower at 161.20 krona. Danske Bank is rated 'Top Short' in our European Large-Cap Global Top Picks
    • Eli Lilly (LLY) said results from an experimental diabetes drug included a 12.7% loss of weight for patients. With that, Eli Lilly will conduct a "very broad" trial to investigate its use for other ailments, including obesity. Eli Lilly is rated 'Neutral' in our US Large-Cap Global Top Picks.
    • Google (GOOGL) may be investigated by the US Department of Justice according to a report in the NY Post today. The article states Makan Delrahim, the DOJ antitrust chief, told senators Wednesday that he may investigate Google and its Android operating system though there has been no official word from the government. Google (Alphabet) is rated 'Neutral' in both our US Large-Cap and US Information Technology Global Top Picks
    • Kering (KER FP) shares are falling 5% at 439.70 francs after social media reports speculating that China may increase scrutiny of what its citizens are bringing into China. China is crucial for luxury goods sellers as its millennials are key buyers of goods from Kering and other luxury goods sellers. Kering is rated 'Attractive' in our European Large-Cap Global Top Picks
    • Nintendo (7974 JP) will release a new Switch console in the second half of 2019, according to a report in the Wall Street Journal. Daiwa upgraded Nintendo to a buy from hold with a price target hike to 55,200 yen from 46,200. Despite the news, Nintendo closed 1.3% lower at 40,790 yen. Nintendo is not rated in our Global Top Picks
    • Swedbank (SWEDA SS) shares are falling 2.5% at 201 krona despite comments from the Swedish FSA downplaying the chance for money laundering in its Estonian operations. This comes after a Bloomberg story yesterday highlighting the large flow of funds through Estonia that the regulator seemed to downplay. Swedbank is rated 'Attractive' in our European Large-Cap Global Top Picks

    European Stocks

    • European stocks are declining this morning, as investors continue to assess US Fed Chairman's Powell's comments and the impact of higher US Treasury yields on asset allocation
    • The Euro Stoxx 600 is currently down -0.84%, the FTSE 100 has declined -1.06%, the DAX has fallen -0.31%, and the CAC 40 is lower by -1.08%
    • Investor sentiment for European stocks is negative with the advance/decline ratio for the Euro Stoxx 600 currently at 0.27x
    • Insurance (+0.94%), Banks (+0.44%), and Oil & Gas (-0.06%) stocks are the top performers in the Euro Stoxx 600 today
    • Personal & Household Goods (-2.57%), Real Estate (-2.16%), and Utilities (-1.75%) stocks are the worst performers in the Euro Stoxx 600 today
    • 62 stocks in the Euro Stoxx 600 are at 4-week highs while 51 stocks are at 4-week lows
    • 25 stocks in the Euro Stoxx 600 are overbought while 23 stocks are oversold according to the 16-day RSI Measure
    • VSTOXX, the European stocks equivalent of the VIX, is little changed this morning and is currently at 14.23 after closing at 14.61 yesterday
    • EUR€ is currently up +0.157% against the USD$ to 1.1496
    • GBP£ is currently up +0.332% against the USD$ to 1.2983
    • CHF is currently little changed against the USD$ at 1.0085
    • German 10-Year Bunds are lower with yields up 5.7 basis points to 0.532%
    • UK 10-Year GILTs are lower with yields up 7.9 basis points to 1.654%

    Asian Stocks

    • Asian stocks closed in the red overnight following the jump in US treasury yields in yesterday's trading
    • The Nikkei 225 finished down -0.56%, the Hang Seng ended down -1.73%, the Hang Seng China Enterprise declined -2.21%, and the CSI 300 was +1.04%
    • While Chinese stocks are closed for Golden Week, Hong Kong stocks continue to be under pressure as a strengthening USD$ and improving economic outlook in the United States is leading to a flow of funds into US assets at the expense of Hong Kong and Chinese assets
    • Investor sentiment for Japanese stocks finished neutral with the advance/decline ratio for the Nikkei 225 closing at 1.06x
    • 34 stocks in the Nikkei 225 hit 4-week highs while 2 stocks reached 4-week lows
    • 48 stocks in the Nikkei 225 closed overbought while 1 stock closed oversold according to the 16-day RSI Measure
    • Investor sentiment for Hong Kong stocks finished negative with the advance/decline ratio for the Hang Seng closing at 0.11x
    • 1 stock in the Hang Seng hit 4-week highs while 7 stocks reached 4-week lows
    • 2 stocks in the Hang Seng closed overbought while 2 stocks closed oversold according to the 16-day RSI Measure
    • Japan 10-Year Government Bonds are lower with yields up 1.8 basis points to 0.159%
    • JGBs 2s-10s Spread has widened 1.2 basis points to 0.27%
    • JPY¥ is currently down -0.201% against the USD$ to 114.3
    submitted by /u/QuantalyticsResearch
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    Are there any good daily stock market podcasts?

    Posted: 04 Oct 2018 05:25 AM PDT

    My morning commute is about 45 minutes. Lately I've been listening to Mad Money w/Jim Cramer but I would love to try new ones anyone has to recommend. Thanks.

    Edit: Thank u everyone for your suggestions!!

    submitted by /u/DeepWebSurfer
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    SuperMicro takes a nose dive due to hacking report

    Posted: 04 Oct 2018 09:30 AM PDT

    Supermicro, one the largest US manufacturers of server motherboards, has dropped more then 50% in share value after Bloomberg released a report on Chinese government infiltration of their supply chain.

    Are they a dead company walking, or is this the best possible dip to buy into?

    https://www.bloomberg.com/news/features/2018-10-04/the-big-hack-how-china-used-a-tiny-chip-to-infiltrate-america-s-top-companies

    submitted by /u/hexyrobot
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    How long did it take the market to correct last time the Treasury rates went up?

    Posted: 04 Oct 2018 11:31 AM PDT

    Market had a huge dip today. Was wondering if this is usually like a 2-3 day dip?

    submitted by /u/longdistamce
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    Inverse Female CEO strategy (serious)

    Posted: 03 Oct 2018 07:26 PM PDT

    https://docs.google.com/spreadsheets/d/19T6ZkvPX9pA8TN39i1atmTZHNFrTkGhzJ0fN2REm3eA/edit#gid=0 - Spreadsheet with Female CEO's.

    Starting to buy puts - https://i.imgur.com/bJNWG8v.png I'm waiting for deposits to go through so I can continue buying.

    I will be purchasing 50 puts total as a first initial test, all 2019, preferably Feb/March. I am buying the first contract down from current stock price, if available. Some stocks are lower volume, so it's harder to lock in exactly what I want. I am specifically targeting stocks between $15-45 as my price point, mostly due to the cost of options allowing for a wider spread. If anyone has any specific stocks that you find would fit this well, please feel free to chime in.

    I'll be updating the spreadsheet on a weekly basis with my week P/L % as well as running total P/L and P/L %.

    I may readjust my 50 as time goes on, but for the most part, I will be holding all until at least JAN 2019.

    This isn't a troll or poor attempt at humor, it's a strategy I've looked into and am now putting into place.

    submitted by /u/Dasweb
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    Markets down, GOOGL, NKE, MA down 2%+

    Posted: 04 Oct 2018 08:47 AM PDT

    Stocks are down a bit, are you guys buying anything? I am considering Pepsi. Should I hold off until next week?

    submitted by /u/juggyfish
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    Defensive stocks or defensive ETFs?

    Posted: 04 Oct 2018 01:38 PM PDT

    If you want to make your portfolio more defensive do you prefer buying defensive stocks (like JNJ) or ETFs covering defensive industries (consumer staples etc.)?

    submitted by /u/MangoMessiah
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    any buying opportunities from the drop today?

    Posted: 04 Oct 2018 11:03 AM PDT

    i'm looking at TLRY, AMD, BABA, SQ as they all took big hits, at least for short term sell. how about yall?

    submitted by /u/sfw63
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    AMD on the Rise

    Posted: 04 Oct 2018 01:15 PM PDT

    I gave been doing some of my own research and it seems that AMD can overtake Intel according to analysts, but the stock's price dropped $4 in 2 days. I'm worrying here. What do you think?

    submitted by /u/Sidappa
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    Universal Savings Account

    Posted: 04 Oct 2018 05:52 AM PDT

    Does anyone have more information on this? Looks like a resolution made it through the house recently.

    From what I gather, this account is tax free on the principle and gains, $2500 max yearly contribution, and no restrictions on withdrawing the funds. I haven't done a deep dive into this yet and will once I'm home, but this sounds pretty nice if that is in fact what it is.

    Link to get started: https://policy.house.gov/legislative/bills/hr-6757-family-savings-act-2018

    submitted by /u/maddumpies
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    Rumor Adobe will release photoshop for Ipad. Adobe summit in 10 days.

    Posted: 03 Oct 2018 09:29 PM PDT

    As a big Adobe user and professional compositing artist, I think this move shows huge potential for adoption to portable workflows for artists in a big way.

    In July Bloomberg posted an article about this topic, and I think there is a strong potential that this announcement could be coming very soon at the Adobe MAX summit, which takes place October 15–17 in Los Angeles.

    Article Link I am referring to is below, but the main part that I find intriguing is this:

    " Scott Belsky, Adobe's chief product officer of Creative Cloud, confirmed the company was working on a new cross-platform iteration of Photoshop and other applications, but declined to specify the timing of their launches. "

    "My aspiration is to get these on the market as soon as possible," Belsky said in an interview. "There's a lot required to take a product as sophisticated and powerful as Photoshop and make that work on a modern device like the iPad. We need to bring our products into this cloud-first collaborative era." https://www.bloomberg.com/news/articles/2018-07-13/adobe-is-said-to-plan-photoshop-for-ipad-in-app-strategy-shift

    I believe the stock will move very strongly if they announce plans for more creative cloud products to spread into the mobile space. This in conjunciton with rumors of a new Ipad Pro coming out, will be a big reason for artists to invest into the apple ecosystem and expand their memberships with Creative Cloud. As a professional artist myself, I have already adopted Creative Cloud for Lightroom on my iPhone, but now that processing power has increased over the last years, Photoshop supporting raw images on an iPad is extremely appealing.What do you guys think? I have invested Long into adobe, and am increasing my position.

    submitted by /u/GreenScreen20
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    Elastic.co IPO

    Posted: 04 Oct 2018 06:32 AM PDT

    Just reading about this company but not much insights. Seems the do on site search and data aggregation. The tech looks promising and the revenue growth looks good. Anyone have more knowledge of this company?

    submitted by /u/mike42979
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    Rookie Canadian trader

    Posted: 04 Oct 2018 11:02 AM PDT

    Living in Canada and looking to start trading. I'm looking for some good options of somewhere to make trades, my bank charges outrages fees to trade. I'm also looking for the best place to research the rules of trading within Canada. Thanks any help is appreciated.

    submitted by /u/How-Cris
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    The imminent decline

    Posted: 04 Oct 2018 01:55 PM PDT

    Are y'all gonna wait to see how far this drops to buy up or are people selling now to have cash before it gets worse? Very young and new investor here, just bought into NVDA, MSFT, SQ, and TTWO today. Now I'm concerned I should have waited to buy if it's getting lower, or perhaps held off entirely. I believe in these companies for the most part, but I wonder if they can still be lucrative in the long run if we get hit with our next recession. I know nothing can really be accurately predicted but I was wondering what experienced investors on here think, as I have limited knowledge on the past and how companies fare after stock market crashes. If this is annoying I will delete lol just looking to talk about all this as I'm new and hungry to learn. Thanks.

    submitted by /u/hujili
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    Why do stocks react negatively to highef interest rates?

    Posted: 04 Oct 2018 01:50 PM PDT

    I might be dumb but doesn't higher interest rate equate to a higher supply of money as well as inflation therefore stocks should go up? (More money to flow into equities and prices raise across all elements of economy)

    I don't understand the concept at all.

    submitted by /u/kotachendoge
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    What happened today and was it possible to identify this or see this coming?

    Posted: 04 Oct 2018 01:24 PM PDT

    So I haven't dealt with sell offs before as I was never that heavily invested in the stock market. But I am now, and today was the first time I had see a massive sell off like this. I realize a lot of this was due to the bond yield jumping. But were the signs there? When did that yield jump, was it AH? Are there factors and things to look for going forward? Any and all help is appreciated!

    Edited because apparently some people think using the word massive was an indictment of our entire institution

    submitted by /u/Errybody_dothe_Lambo
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    New to the stock market. any advice and or reading material that would help me understand the market more?

    Posted: 04 Oct 2018 06:56 AM PDT

    Just opened up my first stock market portfolio on september 18 2018. Today is october 4 2018 and every stock ive bought into has dropped significantly. Would appreciate some advice please

    submitted by /u/Gambit2112
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    Inverse etf of stocks with high short interest?

    Posted: 04 Oct 2018 12:51 PM PDT

    Are there any diversified inverse etf's containing stocks with the most or very high short interest?

    submitted by /u/sean99245
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    $JD

    Posted: 04 Oct 2018 12:13 PM PDT

    Thoughts on JD? Have monitored it since ipo and got in at $21 thinking about possibly doubling down depending on how the trade tariffs pan out. Looking to hold for a long term.

    submitted by /u/CashMoeny12345
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    Will you be buying the FB dip?

    Posted: 04 Oct 2018 12:02 PM PDT

    Was just taking a quick look at their chart and it's near the 52-week low that ran up to their ATH. Thoughts?

    submitted by /u/9boy
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    Tell your Boomers to buy Magna over GE, double the Dividends, biggest E-car part supplier to China.

    Posted: 04 Oct 2018 11:40 AM PDT

    After GE slaughters the puts, it will slaughter the calls. Mark my words. Get out now.

    submitted by /u/AutoModeraetor
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    SCMI buy?

    Posted: 04 Oct 2018 07:42 AM PDT

    So news broke that SCMI scammed the US by installing hacking chips on mother boards (from my understanding of the news). Stock has already dropped 40% and is still dropping.

    I am intrigued. Will the stock bounce back or has it lost credibility and will die? If it drops 50 or 60% is it a good gamble to buy in and sell on the rebound or is this it for the company?

    submitted by /u/weekendgunners
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    What online brokers offer dividend reinvestment plans?

    Posted: 04 Oct 2018 07:36 AM PDT

    I want to start investing in the long term and that means buying stocks and reinvest the dividends but where do I go to do this? Do any online brokers offer this service? What is the best? Also I am a EU citizen living in Ireland.

    submitted by /u/jammydodger147
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    I need advice for 3 years investment plan on stocks

    Posted: 04 Oct 2018 07:23 AM PDT

    hello guys, I'll buy 1000$ stock every month and I'll keep them for 3 years.

    What stocks would you invest?

    submitted by /u/thetrollingstone
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