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    Thursday, July 30, 2020

    Stocks - r/Stocks Daily Discussion & Options Trading Thursday - Jul 30, 2020

    Stocks - r/Stocks Daily Discussion & Options Trading Thursday - Jul 30, 2020


    r/Stocks Daily Discussion & Options Trading Thursday - Jul 30, 2020

    Posted: 30 Jul 2020 01:06 AM PDT

    This is the daily discussion, so anything stocks related is fine, but the theme for today is on stock options, but if options aren't your thing then just ignore the theme and/or post your arguments against options here and not in the current post.

    Some helpful day to day links, including news:


    Required info to start understanding options:

    • Call option Investopedia video basically a call option allows you to buy 100 shares of a stock at a certain price (strike price), but without the obligation to buy
    • Put option Investopedia video a put option allows you to sell 100 shares of a stock at a certain price (strike price), but without the obligation to sell

    See the following word cloud and click through for the wiki:

    Call option - Put option - Exercising an option - Strike price - ITM - OTM - ATM - Long options - Short options - Combo - Debit - Credit or Premium - Covered call - Naked - Debit call spread - Credit call spread - Strangle - Iron condor - Vertical debit spreads - Iron Fly

    If you have a basic question, for example "what is delta," then google "investopedia delta" 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 our past daily discussions here. Also links for: Technicals Tuesday, Options Trading Thursday, and Fundamentals Friday.

    submitted by /u/AutoModerator
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    US GDP Q2 contracted by 32.9%

    Posted: 30 Jul 2020 05:54 AM PDT

    Here were the main metrics from the Bureau of Economic Analysis' (BEA) advance Q2 GDP report, compared to consensus estimates compiled by Bloomberg:

    Q2 GDP annualized, quarter over quarter: -32.9% vs. -34.5% expected vs. -5.0% in Q1

    Q2 Personal consumption: -34.6% vs. -34.5% expected vs. -6.8% in Q1

    Core Personal consumption expenditures, quarter over quarter: -1.1% vs. -0.9% expected vs. 1.7% in Q1

    Not really surprising but still a bit unexpectedly bad...

    And with China GDP grows 3.2%; China has officially taken the first place in GDP ranking

    submitted by /u/hieplenet
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    Apple splitting shares 4:1

    Posted: 30 Jul 2020 01:33 PM PDT

    Apple just announced via CNBC that they are splitting their shares 4:1 to "make them more accessible to a broader base of investors". Anyone else stocking up?

    submitted by /u/thenewredditguy99
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    Another genius move by AAPL

    Posted: 30 Jul 2020 01:56 PM PDT

    Splitting the stock 4:1 is another genius move by AAPL and is a great protection strategy for them from anti-trust actions. Making their stock easier to own for retail investors makes regular people have skin in the game.

    More brokerages are allowing fractional shares, but I still think this shows why Apple is still much more politically savvy from Facebook or Amazon. They know ways to move public opinion.

    submitted by /u/GreatnessAwait5
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    Sample ETF portfolio

    Posted: 30 Jul 2020 04:46 AM PDT

    Hey All,

    A lot of new people have been posting here recently. I wanted to share an allocation I came up with to solicit feedback but also to show you can get good exposure to growth through ETFs instead of tunneling money into stocks if you dont know how/havent had time to do due diligence on individual securities.


    20% VOO- I chose VOO over VTI and SPY because it has the lowest expense ratio and doesnt include the smallcap holdings seen in VTI. (Low Risk Move)

    15% VYM- The other etf i was considering here was NOBL, but the expense ratio is much higher at 0.35% compared to VYM's 0.06%.

    10% QQQ- NASDAQ has been killing it recently, and I don't see any big players fading soon. IMO tech will continue to rise long term, even more so if any lifestyle changes caused by COVID stick. Tech

    10% LQD- I wanted a 90/10 split and chose corporate bonds in part honestly due to past performance and higher yield compared t ogovt bonds. Happy to get any feedback here.

    10% VEA- Some foreign market exposure. This has a low expense ratio compared to competitiors IXUS and higher liquidity than SCHF

    10% VWO- Emerging markets. This helps diversify and historically has higher returns than US stocks with a bit more risk.

    10% VNQ- This is a real estate play. It has a much lower expense ratio than IYR and has ligher liquidity than SCHH. This offers some good diversity and helps against inflation.

    The next 3 are semi-permanent part of the portfolio that i see changing out as necessary over a period of years. My reason for these three is just that I'm a believer in the field.

    5% ARKW

    5% SKYY

    5% IHI- I'm in this field. Beyond robotics , wearables and other sub-sectors will soon be very prevalent.

    submitted by /u/Arksaw
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    Apple now has $193.82 billion in cash on hand

    Posted: 30 Jul 2020 02:04 PM PDT

    https://www.cnbc.com/2020/07/30/apple-q3-cash-hoard-heres-how-much-apple-has-on-hand.html

    Apple disclosed it now has $193.817 billion in cash, up from the second quarter.

    That's up from the company's fiscal second quarter of 2020, when the company reported a $192.8 billion cash pile.

    Apple has continuously hosted one of the largest cash piles among U.S. companies but has faced pressure from the Covid-19 pandemic.

    submitted by /u/coolcomfort123
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    Why is my BEP (Brookfield Renewable Partners) down 20% today on merger news?

    Posted: 30 Jul 2020 07:10 AM PDT

    https://www.globenewswire.com/news-release/2020/07/29/2069618/0/en/Brookfield-Renewable-Receives-Approval-to-Merge-With-Terraform-Power-and-Confirms-Date-to-Distribute-Shares-of-Brookfield-Renewable-Corporation.html

    Just wondering if the news is viewed negatively, or if there is some weird restructuring affecting my shares. Hoping someone can help me understand

    submitted by /u/sowoky
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    Top five most important fundamental analysis pointers to determine a healthy company

    Posted: 30 Jul 2020 08:40 AM PDT

    I'm mainly a technical analyst when it comes to trading, but I would love to involve a bit of fundamental analysis to my strategy to get the confirmation that the company I'm buying in is also healthy.

    In that regards, my question is: what are the top 5 or top 3 most important fundamental analysis pointers to determine a healthy company?

    Looking forward to the replies.

    submitted by /u/JimmyNeedles-TS
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    U.S. G.D.P. Fell 9.5 Percent

    Posted: 30 Jul 2020 06:01 AM PDT

    Economic output fell at its fastest pace on record last spring as the coronavirus pandemic forced businesses across the United States to close their doors and kept millions of Americans shut in their homes for weeks.

    Gross domestic product — the broadest measure of goods and services produced — fell 9.5 percent in the second quarter of the year, the Commerce Department said Thursday. On an annualized basis, the standard way of reporting quarterly economic data, G.D.P. fell at a rate of 32.9 percent.

    The collapse was unprecedented in its speed and breathtaking in its severity. The only possible comparisons in modern American history came during the Great Depression and the demobilization after World War II, both of which occurred before the advent of modern economic statistics.

    Unlike past recessions, this one was a result of a conscious decision to suspend economic activity to slow the spread of the virus. Congress pumped trillions of dollars into the economy to sustain households and businesses, limit long-term damage and allow for a rapid rebound.

    The plan worked at first. In recent weeks, however, cases have surged in much of the country. Data from public and private sources indicate a pullback in economic activity, reflecting consumer unease and renewed shutdowns.

    "In another world, a sharp drop in activity would have been just a good, necessary blip while we addressed the virus,"said Heather Boushey, president of the Washington Center for Equitable Growth, a progressive think tank. "From where we sit in July, we know that this wasn't just a short-term blip."

    The number of Americans filing new claims for state unemployment benefits totaled 1.43 million last week, the Labor Department reported Thursday.

    It was the 19th straight week that the tally exceeded one million, an unheard-of figure before the coronavirus pandemic. And it was the second weekly increase in a row after nearly four months of declines, a sign of how the rebound in cases has undercut the economy's nascent recovery. Claims for the previous week totaled 1.42 million.

    New claims for Pandemic Unemployment Assistance, the government's program aimed at covering freelancers, the self-employed and other workers not covered by traditional unemployment benefits, totaled 830,000. That number, unlike the figure for state claims, is not seasonally adjusted.

    submitted by /u/kayaarr
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    AMZN & FB ��

    Posted: 30 Jul 2020 01:32 PM PDT

    Congrats to all who's owning those I missed my opportunity to buy any of them because had bad dream about my portfolio going down (which came true last month) From now on, only analytic decisions What are your tools to make some ? 😀

    submitted by /u/drakonolom2
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    Who held onto their Amazon shares today?

    Posted: 30 Jul 2020 01:19 PM PDT

    I sold the majority of my shares since the risk is high but decided to held onto some to see what would happen after earnings, very happy i kept some shares around, hopefully we'll see ATH tomorrow.

    submitted by /u/Accerfebreeze
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    Logitech will hit new highs with Online Schooling

    Posted: 30 Jul 2020 01:00 PM PDT

    Seems like with schools going online during the pandemic, sales with webcams and other computer hardware will increase over the next couple months. With Logitech being a steady riser it looks to be a safe trade. Thoughts?

    submitted by /u/TroubleSwitch
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    How I start my Trading Day

    Posted: 29 Jul 2020 04:11 PM PDT

    I'm new to Reddit but not to trading...it's been a hobby that's changed into a profession. It hasn't been easy and I've wanted to give up every time I lose. Can't remember how many times I said I'm just going to by mutual funds. But something changed one day when I was having this thought.

    At that moment I started writing down my stupid trades. I started seeing a pattern. Everyday I was up I got greedy and decided to go big on one quick trade to increase my profits for that day. It was always emotionally driven and greed was a major factor.

    Now every morning before I log in I read my greatest hits of bonehead trades and before too long I stopped making them and profits were built upon profits.

    I wrote this in hopes it helps someone else out there and wish I would have done this in the beginning of my investing career.

    submitted by /u/SpartanMayor
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    What is everyone thinking about AAPL earnings?

    Posted: 30 Jul 2020 07:36 AM PDT

    AAPL releases its earnings after hours today.

    I've been toying about whether to pick some more up today under the theory that mediocre or bad even earnings are now baked into the price. (It is down $20 from a couple of weeks ago.)

    What is everyone else doing?

    submitted by /u/lv4myw
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    NOKIA dipped - earnings tomorrow.

    Posted: 30 Jul 2020 05:26 AM PDT

    With Nokia reporting their earnings tomorrow and such a large dip in the past few days this may be a good time to buy in if you were planning on holding Nokia on the long term.

    With the 5G capabilities and Europe using Nokia as a large supplier the price will likely to go on a rise again in the next few months. Making this a medium to long term hold in my opinion.

    I am invested in Nokia stock and might buy more today. Would love to hear some of your guys opinions.

    submitted by /u/Frostbyte1313
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    OSTK - Most amazing stock in 2020?

    Posted: 30 Jul 2020 07:11 AM PDT

    What do you think of OSTK?

    It went from under $3 to above $70 and continues to show strong and steady growth. Every dip (even a 20% dip) seemed to recover within few days. Many people think ZM, TSLA, FSLY had good growth, but it is nowhere near as much as OSTK in terms of percentage.

    I used to owned it when it went down from $24 to $9 last year. I also bought it around $20 this year, but sold it early at around $40.

    I never thought a badly beaten stock could rise up again in such short time. I regret not holding it long enough. But buying it now will not yield massive gain like it did from $3 to $70, unless it can go to $2400, which is unlikely.

    submitted by /u/olivesnow
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    Too late to invest in tech giants?

    Posted: 30 Jul 2020 01:43 PM PDT

    23 years old. Strong believer in technology and amazon, Apple, google. I just feel like they are priced so high already but it looks like nothing is stopping them from continuing to skyrocket. I have mainly been investing in s&p 500.. thoughts?

    submitted by /u/lonewolf11007
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    FACEBOOK TRUMPS EARNINGS

    Posted: 30 Jul 2020 01:24 PM PDT

    Facebook beat expectations with earnings and has already rallied 5% after hours

    Do you guys think this is a good sign for all social media?

    What's your thoughts on Facebook and adding to a position for a long term hold

    submitted by /u/HiMyNamesEvan
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    Exxon cutting jobs to save dividend ( link in description)

    Posted: 30 Jul 2020 11:11 AM PDT

    Got to keep that aristocrat designation!

    Edit: How is this not going to be a PR nightmare?

    Exxon prepares spending, job cuts to save dividend

    submitted by /u/ohwait2snakes
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    BEP Stock Split

    Posted: 30 Jul 2020 08:37 AM PDT

    As far as I understand they're going to exchange 1 share of BEPC for every 4 shares of BEP and give cash for the fraction left over, but the price dropped today from $54 to $43? That's a -20% drop by my calculation, but somehow the tickers are only showing -1.8% currently.

    submitted by /u/rockthethe
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    Learning from the Marijuana stock boom

    Posted: 30 Jul 2020 07:27 AM PDT

    What are some lessons to learn from the sustained high gains/high activity in weed stocks over the last five years? Here are my thoughts but I'd like to hear what others think.

    The main driving force for expansion of this industry was legislation. When the first 1-2 states decriminalized/legalized marijuana, it became clear that there's only one likely direction society is headed in the legal sales of marijuana, and that was and continues to be toward less restrictions and more expansion.

    I see similarities with online gambling. Each state within the US has its own rules but fast forward 1,2, 5+ years; will online casinos/online sports betting/etc decrease? I say absolutely not, there is only one likely direction and it is less restrictions and more expansion. COVID-19 and subsequent post-COVID "new normal" will cause a much more accelerated pace of this expansion in my opinion.

    For this reason I'm long on DKNG and GAN. Short term, I will add, these stocks present big opportunities for swing trading with major weekly ups and downs as pro sports leagues successfully (and unsuccessfully) get back onto the field/court.

    submitted by /u/shinjury
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    What happened to Brookfield Renewable Partner’s stock today?

    Posted: 30 Jul 2020 02:02 PM PDT

    Hi r/stocks,

    I own shares of Brookfield Renewable Partners (BEP) and today they opened down almost 20% and continued to drop throughout the day (currently -26%) They approved a merger with Terraform Power today, buying the remaining 40% of the company they don't already own with stock.

    Why would this trigger such a huge drop? Is it due to share dilution? They are issuing the stock but growing in size by absorbing Terraform, no? There is likely a premium paid for the acquisition but this just seems like a huge drop. Is this something transitional or did the deal tank the stock? Does anyone know what happened?

    Thanks in advance

    submitted by /u/steezenskis
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    Diversification Problem

    Posted: 30 Jul 2020 10:01 AM PDT

     My portfolio is about 70% tech and the rest are companies in the travel and energy industry. Unsurprisingly the 30% is weighing my portfolio down alot right now so Im just contemplating whether or not I should just drop those and go more into tech companies. I am trying to invest in long term, about 2-3 years, but I think i could get a better return and lose less money if I leave the falling industries behind. My capital is small, about 3k. Any insight would be appreciated. 
    submitted by /u/MoarTarriffs
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