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    Stocks - r/Stocks Daily Discussion & Options Trading Thursday - Aug 20, 2020

    Stocks - r/Stocks Daily Discussion & Options Trading Thursday - Aug 20, 2020


    r/Stocks Daily Discussion & Options Trading Thursday - Aug 20, 2020

    Posted: 20 Aug 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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    Market Cap Milestones

    Posted: 20 Aug 2020 08:38 AM PDT

    Market Cap Milestones 🏆

    • $T reaches $1B in 1924
    • $GM reaches $10B in 1955
    • $GE reaches $100B in 1995
    • $AAPL reaches $1T in 2018
    • $AAPL reaches $2T in 2020

    Source

    submitted by /u/assetdash
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    "NIO forms battery asset company"

    Posted: 20 Aug 2020 05:02 AM PDT

    Nio has now launched "baas" they places over 100 stations in 64 cities.

    Now if you look at what customers can now pay for this service rather than purchasing a new car, it saves them a couple bucks...the company themselves can potentially save 25% off of the original cost to make the car.

    Now I may be wrong but I think this is huge!

    submitted by /u/Binyaminp
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    So TSLA to break 2000 dollars. What's driving this cost?

    Posted: 20 Aug 2020 09:21 AM PDT

    Is the hype for their future in battery? Do people really think they are the future of cars? Is their technology really going to be widely used? Or does it have to do with it's success in reusing shuttle launchers?

    submitted by /u/ac34842
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    What’s going on with TSLA?

    Posted: 20 Aug 2020 09:49 AM PDT

    Why do investors suck Elon's dick so much?

    P/E ratio >1000

    I just read something like 47% of Americans don't have savings over $500. I know investors are more looking at Tesla's presence in China but the stock has rallied 20% since reports came out that their China deliveries in July slipped 25%.

    Please, somebody make sense of this.

    submitted by /u/Bigcat1148
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    Facebook is facing a $650 million lawsuit for illegally gathering users data without their consent.

    Posted: 20 Aug 2020 12:55 PM PDT

    Facebook is paying $650 million in response to a lawsuit, in which Illinois users accused them of violating the US states biometric Information Privacy Act. They are guilty for violating the law with the "tag suggestion feature" which enabled users to find their Facebook friends through previously uploaded photos. The court hearing is set for Jan 7, 2021.

    Article: https://www.businessinsider.com/facebook-wins-preliminary-approval-to-settle-facial-recognition-lawsuit-2020-8

    submitted by /u/Rham1040
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    What are your best non tech long term hold stocks under $100.00

    Posted: 20 Aug 2020 04:47 AM PDT

    What NON TECH stocks under $100.00 are you holding long term? I'm pretty tech heavy and want to spread it out more. Companies that are committed to growth in their early stages. Looking to set it and forget it(although I wouldn't be able to fight the urge to check it out regularly lol).

    submitted by /u/big-sexy89
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    Strong stocks for impending dip?

    Posted: 20 Aug 2020 10:19 AM PDT

    https://www.marketwatch.com/story/a-tale-told-by-an-idiot-cnbcs-jim-cramer-urges-investors-not-to-be-fooled-by-new-highs-in-the-stock-market-2020-08-19

    Cramer believes a dip is coming. He also infers that congress should have come up with another relief stimulus, but I think that would only delay and inflate the impending dip. "The winners in this market are the companies that are most divorced from the underlying economy" from the article. With new investors entering the markets, the federal reserve run away printing and possible continuation of stimulus relief, do you guys feel strong about any stocks in particular and will you be consolidating your portfolio positions?

    Edit: Cramer from Kramer

    submitted by /u/Chadmerica
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    The imminent slide of UBER

    Posted: 20 Aug 2020 04:30 AM PDT

    I made this post yesterday, but I wasn't happy with the details so I quickly deleted it in the interest of taking more time on it. For disclosure, I am short on UBER. This post could apply to other gig services, but I am focused on Uber.

    As most of us are aware, Uber has not been successful at all in a traditional business sense - that is that they do not make money and have spent the last decade burning investor cash. How bad is it? Let's look at a few fundamentals, sourced from E-Trade:

    TTM Net Profit Margin (-50.72%)

    Overall, UBER lost 150.72% of the revenue that they collected, meaning that for every $100 they made, $150.72 was spent to "gain" it. Their TTM Operating Margin was -48.90% which indicates to me that it is the main contributer to such a negative bottom line. For the past decade Uber has been fine operating on this loss in order to gain market share - but how long can this unsustainable model be propped up?

    TTM Price/Sales (3.77x)

    Currently, Uber is trading at a price almost 4 times its sales which result in a negative income anyway. This is a money pit.

    TTM Return on Investment Capital (-29.62%)

    Need I say more? This is okay for a startup, but is 10 years and global operations still a "startup"?

    -----------------------------------------------------------------------------------------------------------------------------------------------------

    So those are bad, but why do I think the slide is imminent? Mostly related to their ongoing and especially current legal issues.

    On the first of this year, California's Assembly Bill 5 went into effect. It's a law so there is a ton to it, but the context we care about is the "gig economy worker" part which have to do with classifying gig workers as employees which come with other costs and benefits that Uber (and other Transportation Network Companies, or "TNCs") have been able to get around and limit further losses since their inception, to the dismay of taxis and other traditional permitted transportation operators.

    This is America, so Uber has not complied with this. As a consumer, I've noticed drops in availability on their platform lately so I suspect they are now metering workers to some degree to limit full-time employment but that's just anecdotal speculation.

    10 days ago, a California judge granted a preliminary injunction essentially saying enough is enough and that these TNCs and other gig companies must comply. There was a 10-day period for the potential to grant an appeal as filed by Uber, which expires at the end of today. Please correct me if I've interpreted this incorrectly but it seems that if TNCs do not receive injunctive relief by the end of today, 08/20, they will cease operating in the State of California as of 08/21. This seems to have been indicated by Uber and Lyft as well.

    If it is not easy to see, California is one of Uber's largest markets. I don't know the exact numbers, but I've read that most of Uber's business comes from 5 US cities, two of which are Los Angeles and San Francisco. I would guess that California probably accounts for at least 25% of Uber's revenue. It gets more dangerous than this. Other states have already started to draft their own legislation regarding gig economy workers, especially Illiinois, New Jersey, and New York.

    For all of these reasons, I see an imminent drop coming for Uber. What do you think?

    Edit: as of roughly 0930 PT Lyft has indicated it will suspend service at midnight tonight.

    Edit: as of roughly 1145 PT an emergency stay has been granted meaning the services will continue for now out of compliance with the law

    submitted by /u/CoalFlavored
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    Airbnb filed yesterday for their IPO

    Posted: 20 Aug 2020 09:48 AM PDT

    I know pre ipo shares were going for $125 or so. It was based off an $18B valuation. Before covid they were valued at $31B and were expected to do a direct listing on the $40-45B range.

    Any thoughts on numbers now?

    https://www.google.com/amp/s/techcrunch.com/2020/08/19/airbnb-has-confidentially-filed-to-go-public/amp/

    submitted by /u/Likwid24
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    TQQQ is at it's highest it's ever been. Would it be stupid to sell my Apple stocks to buy TQQQ?

    Posted: 20 Aug 2020 09:21 AM PDT

    If I am holding a few Apple stocks with the idea that it will go up, wouldn't be better to hold TQQQ as it's 3x leveraged on tech stocks and apple's increase with thereby increase TQQQ?

    I would appreciate any advice. Thank you!

    submitted by /u/marysopretty475
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    $NET vs $FSLY, which stock is a better long term hold and why?

    Posted: 20 Aug 2020 05:44 AM PDT

    So full disclosure, I own 50 shares of $NET, bought them yesterday. But for those who prefer FSLY, why?

    And to other ppl who are bullish on $NET like me, what do you think about FSLY?

    submitted by /u/Thefishman1
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    What does it take for these high performing companies to do well after earnings calls?

    Posted: 20 Aug 2020 06:02 AM PDT

    Analysts raised expectations the day before nvidia earnings call, and they still beat them but nothing happened. Same thing for the previous quarters. Same thing has happened for half the companies in my portfolio. I get the priced in argument to an extent when the stock does well over the quarter, but it still makes me wonder. What does it take to trigger a jump after earnings? Is there an amount that nvidia could have beaten expectations by that would have helped the stock value? Or is it just a pretty much guaranteed scratch when a well-performing company has an earnings call?

    submitted by /u/Youre_Government
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    Could Spotify be the next Big Tech company?

    Posted: 20 Aug 2020 12:34 PM PDT

    Hey guys, I haven't seen a lot of people talking about Spotify the past months. The stock doubled in value since April because they made huge plays for their Podcast launch.

    Joe Rogan Experience, the biggest podcast in the world is moving to spotify after a 100M dollar deal, then they acquired Kim Kardashian, Michelle Obama and many Youtubers and the stock value increased more than 10% after every headline.

    Joe Rogan's Podcast is starting to be exclusively on Spotify on the 1st of September. I believe it might make some headlines again.

    Could Spotify get market cap from YouTube? Many people are sick of YouTube because the algorithm promotes a lot of trash content, and they demonetize so many videos and many content creators are sick of it.

    SPOT could be the next big tech company imo. They are still expending into many more countries and they have clearly beaten Apple music. Free cashflow from subscriptions which are growing every month and by far the biggest player in the game. Why can't Spotify be the new monopoly?

    submitted by /u/ninostsop
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    GAN Launches Major New Client: Penn Interactive

    Posted: 20 Aug 2020 04:33 AM PDT

    GAN has been one of my favorite stocks this summer. I loaded up on the big dip in early June, was super excited as it touched 30, then sad as we all watched it walk down under 20 during two weeks of extremely low volume and no PR.

    It's been moving up on expectation of decent earnings and strong guidance, but it's just been revealed PENN is a new client.

    https://newsfilter.io/a/328da71d332679dcbc600267f4166e51

    This company has huge growth potential as states continue to open up gambling. I've been keeping track on monthly numbers for igaming wins and sports betting in states that have legalized, and the growth from 2019 to 2020 is astonishing. It's only going to get better as states continue to open up gambling, and GAN seems well poised to capture new customers due to their rapid launch times (deployed for Cordish Gaming Group in PA in only 72 days).

    Positions: 300 shares long + September $25 and $30 calls

    submitted by /u/Siiiilk
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    How to Prepare for Marijuana Legalization

    Posted: 20 Aug 2020 08:32 AM PDT

    Your typical, "I am a newbie to trading so take it easy on me" disclaimer

    So this November, New Jersey is allowing its residents to vote on the legalization of marijuana. The deal made for this to get on the ballot is that if it doesn't pass, the topic of marijuana legalization will not be revisited for another three years.

    I am convinced that it's going to pass for a wide variety of reasons, one of which being the massive change in public opinion on the topic. Would a state as small New Jersey passing legalization effect different cannabis stocks in any way? Is it worth investing in any cannabis companies leading up to November this year? Do you guys have any marijuana stock that you have faith will rise?

    submitted by /u/splangi
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    Adobe

    Posted: 20 Aug 2020 04:53 AM PDT

    Obviously I am going index all the way when I first start up this year, but I have decided to allocate some of my residual cash / savings into a few individual stocks for more growth. One that blew me away was Adobe - look at their balance sheets! Very profitable with nearly no operational costs. And a 32% return each year average for the past 10 years. What are your thoughts on Adobe? The other two I liked for similar reasons include MSFT, and V.

    submitted by /u/NAD92
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    AMD's future?

    Posted: 20 Aug 2020 02:37 AM PDT

    Hi, do you think AMD has room to grow?

    How much of Intel's pie can they take? I mean, they surely will dominate retail, but what about corporates?

    Do you believe it pops 100 USD in one year time?

    submitted by /u/ZoomsterVK
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    Free Financial Research Newsletter

    Posted: 20 Aug 2020 01:25 PM PDT

    We are excited to launch The Financement! Our free newsletter will provide readers with insight into current financial research. We aspire to help bridge the gap between academia and industry, providing complex financial research to the everyday reader. Every other week, we'll be sending an easy to read summary of a financial research paper critical to recent events directly to your inbox. If you're interested in signing up and want to learn more click the link down below.

    https://www.subscribepage.com/the-financement-news

    submitted by /u/LeoCFA
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    Handful of Renewal Energy stocks lower than expected

    Posted: 20 Aug 2020 10:57 AM PDT

    After a spectacular post the other day by /u/Evil____, can be found here, I decided to look closely at ICLN and TAN. I put a lot of other renewal energy stocks into my watchlist.

    This last two days, almost across the board, all the renewal stocks seem to be on a small downward trend. Not a worrying concern. Stocks go up and down, I get that.

    My questions are two:

    1- Is there a macro event I'm not seeing that may be bringing this particular sector a little lower?

    2- Are there recommended that some of you may get Energy related news? I'd like to continue doing DD and research, while staying informed on the sector in general.

    submitted by /u/diffcalculus
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    $TSLA Stock split question

    Posted: 20 Aug 2020 01:02 PM PDT

    I am currently holding Tesla stock and intend to hold thru the 21st. If i sell on Monday and buy back in before the split is issued, will I still receive the 1 to 5 split?

    Only reason for me to sell would be to keep the gains I've made and hopefully buy back in at a lower cost... while still being able to recieve the split shares. Thanks in advance.

    submitted by /u/ConsistentWeight3
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    buying on a dip

    Posted: 20 Aug 2020 10:17 AM PDT

    ive been holding FUV for a while and while im still in the positive the recent dip is making me pause and think

    should i buy some more on this dip or is this a bad sign

    submitted by /u/siminm
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    Stock Split Dead Week?

    Posted: 20 Aug 2020 12:11 PM PDT

    Tesla and Apple split coming up. Tesla says "The split takes effect on August 31 for each shareholder of record on Aug. 21."

    What happens with the stock during the time in between? Not traded at all? Buyers during that time won't get the split and just lose money?

    submitted by /u/mannym92
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    Does Merrill Edge have any index funds?

    Posted: 20 Aug 2020 09:51 AM PDT

    I signed up for ME because I'm already at BOFA and this would be a way to start investing without losing my platinum reward status (lol).

    I have very little idea what I'm doing but all the advice I read said the safe thing to do was index funds. I've tried doing some of the ones recommended, like SWPPX, but ME won't let me. I have no idea how to find good index funds that work with ME and don't have massive transaction fees. How do I get started with this?

    submitted by /u/and-its-true
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    Allied Esports and GRID Announce Esports Betting Licensing Agreement

    Posted: 20 Aug 2020 06:06 AM PDT

    Already jumped and sold off for 200% ( a few days ago, up 60% overnight)

    In it for the hype today and back out

    Anyone else following?

    article here

    submitted by /u/Tricky-Common
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