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    Thursday, October 22, 2020

    Stocks - r/Stocks Daily Discussion & Options Trading Thursday - Oct 22, 2020

    Stocks - r/Stocks Daily Discussion & Options Trading Thursday - Oct 22, 2020


    r/Stocks Daily Discussion & Options Trading Thursday - Oct 22, 2020

    Posted: 22 Oct 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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    Microsoft to buy jet fuel made with waste oil for Alaska Airlines in climate pledge

    Posted: 22 Oct 2020 03:41 AM PDT

    https://www.cnbc.com/2020/10/22/microsoft-to-buy-jet-fuel-made-with-waste-oil-for-alaska-airlines-in-climate-pledge.html

    Microsoft says it will purchase jet fuel from waste oils to help offset emissions on its most-traveled business routes.

    The fuel is blended and distributed to Alaska Air planes at Los Angeles International Airport.

    A Microsoft executive said business travel is likely to recover from the pandemic.

    submitted by /u/coolcomfort123
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    Here is a Market Recap for today Thursday, October 22, 2020. Please enjoy!

    Posted: 22 Oct 2020 01:04 PM PDT

    PsychoMarket Recap - Thursday, October 22, 2020

    Stocks traded choppily once again, going to the red in the morning before recovering throughout the rest of the day. Market participants continue to closely monitor developments from Washington regarding stimulus, a better-than-expected unemployment report, and third-quarter corporate earnings.

    The Nasdaq (QQQ) underperformed today, finishing the day even. The S&P 500 (SPY) finished 0.56% up and the Dow Jones (DIA) ended the day 0.62% up.

    House Speaker Pelosi once again expressed optimism that an additional round of fiscal could be passed before the November 3 election, even as disagreements on key provisions remain in the White House. Pelosi said, "We're just about there. The president wants a bull. That's part of the opportunity we have. Pelosi and Treasury Secretary Steven Mnuchin were scheduled to speak on Thursday to discuss the deal, and the White House's last public offer stood at around $1.88 trillion for a stimulus proposal, versus the $2.2 trillion plan put forth by House Democrats.

    However, the proximity of the election and the lack of support for a bill in the GOP have market participants increasingly doubtful that a bill will be passed, fueling further volatility and uncertainty in the market.

    The Department of Labor released its weekly unemployment report, which showed that another 787,000 Americans filed for first-time unemployment claims, much better than the 870,000 expected by analysts. However, it is important to note an increasing number of individuals have exhausted state unemployment and have rolled into longer-term pandemic-related assistance programs. This shows the devastating effect the pandemic has had on the labor market.

    Today is the second and final presidential debate between President Trump and Joe Biden. The debate will take place in Nashville, Tennessee and will begin at 9 p.m. Eastern time and run for 90 minutes.

    Highlights

    • Goldman Sachs Group Inc. is seizing tens of millions of dollars from top executives after agreeing to pay a $2.8 billion settlement to the US Justice Department for their role in the Malaysian investment fund scandal, commonly known as 1MDB.
    • General Electric (GE) stocks charged up 5.2% today,setting four month highs, after a Bloomberg report that the industrial conglomerate could sell off its majority stake in a steam power business in China. The stock has been on a tear recently.
    • Banks outperformed the market today, with big bank stocks rising around 3% overall.
    • Sabre Corp (SABR) shares were up 15% to $7.64 Thursday after the company said it and Google are developing an artificial intelligence-driven technology platform for travel.
    • The Senate Judiciary Committee authorized its chairman to issue subpoenas to the chief executives of Facebook (FB) and Twitter (TWTR) after the companies limited sharing of New York Post articles regarding the son of Democratic presidential nominee Joe Biden.
    • Alibaba (BABA) announced they would buy 20% of Ant Group when the company IPOs.
    • Tesla (TSLA) had an upgrade from Robert W. Baird from NEUTRAL to OUTPERFORM and price target raise from $450 to $488, it also had an upgrade by JMP securities from MARKET PERFORM to OUTPERFORM WITH A PRICE TARGET OF $516
    • Netgear (NTGR) had a price target raise by Raymond James from $35 to $43 at OUTPERFORM
    • Edwards Lifesciences (EW) had a price target raise by Raymond James and Credit Suisse from $88 to $90 at OUTPERFORM and $92 to $97 at OUTPERFORM, respectively
    • Chipotle Mexican Grill (CMG) had a price target raise by Cowen from $1,400 to $1,550 at OUTPERFORM
    • Crown (CCK) with a price target raised from Morgan Stanley (MS) from $74 to $100 at Equal Weight.
    • Abbott Laboratories (ABT) had a price target raised by Morgan Stanley and Raymond James from $112 to $117 at OVERWEIGHT, and $102 to $114 at OUTPERFORM, respectively.

    "No matter what people tell you words and ideas can change the world" -Robin Williams

    submitted by /u/psychotrader00
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    What ‘young’ companies do you invest in?

    Posted: 22 Oct 2020 11:47 AM PDT

    By young, I mean any stocks that have been in the market for less than five years.

    On my end, I invest in PINS, EBON, LVGO, SE, and GRWG.

    Any tips? I'm looking to add a few more and though I would ask you all :)

    submitted by /u/noochnbeans
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    Which stocks do you believe have the chance for a large boom, once a covid vaccine is released?

    Posted: 22 Oct 2020 09:54 AM PDT

    I'm not really buying into the whole Carnival Cruise line or Airlines, due to the fact that even with the vaccine lots of people will still be to hesitant to venture out on either that early. I was considering Royal Pharma (RPRX), but just wanna hear what y'all think.

    submitted by /u/MrRoutine
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    Traders who trade full time, what is it like?

    Posted: 22 Oct 2020 08:31 AM PDT

    • Do you make constant weekly income? How much is that income roughly?
    • Have you ever run into trouble for doing well consistently? (I've heard about a guy who got flagged as a professional trader for "making too much money")
    • What other cool/bad experiences you went through as a full time trader?
    submitted by /u/Jaker_20
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    Arkk ETF (Cathy Woods) - Getting Lucky or Real Innovation?

    Posted: 22 Oct 2020 11:51 AM PDT

    **What is the root cause of the 2017 and 2020 growth and the stagnation for the rest of the yrs?

    I love this ETF and Cathy Woods fyi. I am very well curious as to what happened in 2017 and 2020 as these are the only years of real growth. Other years it seems ARKK has relatively traded sideways, care to help answer why? Let's discuss below

    Yahoo Finance ARKK chart for your reference: https://finance.yahoo.com/quote/arkk

    Early appreciation for your time and efforts! Good luck to all on your positive endeavors!

    submitted by /u/lizleftt69
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    Why Are Defense Stocks Down?

    Posted: 22 Oct 2020 01:15 PM PDT

    LHX, LMT, NOC. All posting solid earnings beats and raises in revenue yet they're doing awful. I don't understand. Considering dropping a large sum into one of these but I don't understand why they're so discounted right now.

    submitted by /u/Chem3580ThrowAway
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    Thesis: Synopsys ($SNPS) is going to be one of the Best Buy’s is this decade. 1. Continued earnings growth. 2. Very Healthy balance sheet. 3. Great exposure to 5G, IoT, autonomous driving, semiconductors 4. Continued buybacks from the business

    Posted: 22 Oct 2020 12:13 PM PDT

    For background SNPS provides software for chip design and testing so there are not many competitors in the area. Also It isn't often you see companies like this that are valued under $50B. The balance sheet is very healthy with over $1 billion of cash and minimal liabilities and long term debt which bodes well for when interest rates inevitably go back up in 2023 and beyond. Earnings and margins also continue to increase year of year. Margins most recently increasing over 5% from 2019 to 2020. 5G and autonomous driving are finally set to take off this decade too. Also they are doing hundreds of millions of buybacks every year.

    Do your research but my take is this is going to be one of the Best Buy's of the decade... possibly increasing 10 fold for a $300B valuation

    What are your thoughts? also a good stock for recessions

    submitted by /u/bankburn10
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    What do you guys think about Suncor Energy ($SU)?

    Posted: 22 Oct 2020 10:34 AM PDT

    I personally really like this stock for a few reasons:

    1. They have a "moat". Something that keeps potential competition from popping up. Since they're in the energy business, large amounts of capital are required to start a business like this.

    2. They are expanding into renewable energies. Renewable energy is sort of speculative right now, but it's a good way to cover your bases in case oil becomes less consumed over time.

    3. They are not highly leveraged. Their debt to equity ratio is way lower (below 0.5) than any other energy company and they don't seem to be sacrificing large potential gains by not being so leveraged.

    4. They are trading below book value as of now. While the current stock price per share is currently around $12, the book value per share is a little over $17 per share.

    5. Despite not being highly leveraged, they still manage to pay dividends to shareholders (currently 5.47%).

    There are some other reasons why I like this stock, but I wanted to see what other people have to say about it. I ended up buying at around $12/share so I might be a little biased on my reasons for liking it.

    submitted by /u/T_Dizzle_My_Nizzle
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    ARRY stock up nearly 12% today. Why do people not talk about this stock more?

    Posted: 22 Oct 2020 01:31 PM PDT

    Despite belief of the contrary, ARRY is not a medical corporation. This ticker is for Array Technologies, a leading solar tracker manufacturer. They had their IPO on Oct 15th and the price shot from around $21-22 to $38 on close and now about $45.

    "Array reported a revenue of $552 million in the first six months of 2020, up 145% compared to the same time period in 2019. Furthermore, it reported a net profit of $76 million in the first half of 2020 and $39 million in all of 2019, showing that it has been consistently profitable. Array's gross margin also improved in 2020 to 25% compared to 23% in 2019, and its indebtedness is relatively low compared to many other companies which go public."

    85% of their customers are US based so a Biden win would do them well. What do you think?

    submitted by /u/GrapeJuicex
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    Pulled out of HYLN

    Posted: 22 Oct 2020 07:14 AM PDT

    Pulled out of HYLN after just seeing my money continue to disappear, feel dumb for going in in the first place, but at least I pulled out to reinvest and hopefully recover some losses. I plan to get back in later. Anyone else in this boat or been in this boat before?

    submitted by /u/Wolfofballstreet97
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    Ant Financial IPO

    Posted: 22 Oct 2020 05:59 AM PDT

    „Ant is currently the world's most valuable technology startup, and it is likely to break global records by raising more than $30 billion from its concurrent IPOs. Banks handling the deal plan to start formal marketing of Ant's shares to investors around the world on Thursday."

    Looking back at recent IPOs - good to wait a few days after the great turbulences are over??

    https://www.google.de/amp/s/www.wsj.com/amp/articles/ant-groups-giant-ipos-set-to-launch-after-regulators-clear-the-way-11603296011

    submitted by /u/yellowpenblue
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    Down a lot this week

    Posted: 22 Oct 2020 07:53 AM PDT

    Hi! My portfolio is dropping like a stone, should I sell out some stocks?

    I have stonks in:

    Tesla

    Docusign

    Apple

    Amazon

    Netflix

    Axalta coating

    Bull certificate in NQ100 with 10x gearing

    Bull certificate in S&P500 with 10x gearing

    And some funds Now I have invested around 90K in them, and they are down a lot. It'll soon eat up my profit since July which sucks. Is it time to sell out? Will they drop more?

    Can anyone please give some hints? Lol, I'd gladly buy a beer or donate some money somewhere for some help. Thanks!

    submitted by /u/Utking
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    long term gains

    Posted: 22 Oct 2020 07:25 AM PDT

    Canadian investor with stocks in

    Apple, AMD,corsair, microsoft,

    And 4-5 canadian companies (railways,isp,energy)

    I currently invested into Couple shares of ARKK and looking to invest in TAN,FAN, ICLN? Should i wait till after election?? Or should i jus buy in now?

    im lookin to just invest and then stop lookin at my stocks just for long term gain

    submitted by /u/indigo501
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    Biotech-Suggestions

    Posted: 22 Oct 2020 10:06 AM PDT

    New to the thread but looking for any suggestions for up and coming Biotech companies. I saved a few Biotech options that are super cheap and I could buy a shit ton and hopefully have some major gains in like the next 5-10yrs

    Is anyone invested in Biotech on here? Any thoughts or recommendations.

    CLLS NTLA EDIT NVTA NSTG

    Edit: Biotech AND Genomic options.

    submitted by /u/teedollas
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    How do you usually manage averaging down the stock price?

    Posted: 22 Oct 2020 11:12 AM PDT

    Hey everyone! I was wondering what do you people usually do when you own a stock and it's in a downtrend, how often do you average down? every 5% drop? 10%? When do you decide to stop buying?

    In my case I bought some $BAYN shares and then averaged down when it dropped 10%. Since then it's been falling down and I was thinking about buying some more, but I don't want to increase my position too much in relation to my total portfolio because I would already be too deep in it.

    Do you have any rule when it comes to average down the stock price? Curious to know your thoughts/strategies :)

    submitted by /u/davidsl88
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    Enphase

    Posted: 22 Oct 2020 09:22 AM PDT

    ENPH is down tremendously within the last 2 days and seems to still be dropping.

    What are your opinions on the stock and do you think it might be a good idea to scoop shares up once it stabilizes a little bit for a long term play?

    submitted by /u/TheTieDyedPenguin
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    AT&T Shares, Big Jump Today After Q3 Results Topped

    Posted: 22 Oct 2020 01:01 PM PDT

    The telecommunications giant rising today about 5% higher after Q3 results topped

    The company met expectations for adjusted earnings of $0.76 per share, but its revenue figure came in about $800 million higher than analysts had anticipated.

    More http://focusinvesting.biz

    submitted by /u/DaVibes
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    Will SNOW be a buy again?

    Posted: 22 Oct 2020 12:28 PM PDT

    I'm assuming everyone saw the 9%+ gain today. SNOW is getting traction. In my opinion it still seems way overvalued but getting in at another dip (bound to happen) seems like a good play with this one, especially since a lot of hype surrounded it when it initially IPO'd.

    Opinion?

    submitted by /u/markiteer45
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    ARKK and AAPL long term

    Posted: 22 Oct 2020 07:59 AM PDT

    Have majority of my stocks in ARKK and AAPL. I know ARKK can be risky but I see potential for growth in the next 10-15 years. What's your guys option on how it will continue to preform?

    Also have shares in ARKF and ARKG but I like the aggressiveness of ARKK

    submitted by /u/isaacharry
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    Transaction multiple 8x EBITDA (What is the EV/EBITDA then?)

    Posted: 22 Oct 2020 06:12 AM PDT

    Hello,

    I'm currently some analysis of a stock where there is a related acquisition of a firm with an EBITDA of 20 M usd and the company was sold for 160 M usd. So the firm was sold for a 8x EBITDA.

    The firm i'm analysing has a EBITDA of 214 M USD and a Enterprise value of 1310 M USD.

    How am i able to tell the value of the analysed stocks share value or EV based on the transaction value?

    submitted by /u/Krabbovich
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    $NMTR - 9 Meters Biopharma Pipeline

    Posted: 22 Oct 2020 10:53 AM PDT

    9 Meters Biopharma caught my eye in Mid August when the company was given a projected share value of 5 dollars by 2 catalysts by the end of 2021 (currently hovering around 75 cents at the time of this post).

    • August 17/2020 - CEO John Temperato purchases 35k shares at 0.56 cents.
    • August 18/2020 - Around the same time Director Mark Sirgo purchases 100k shares and 0.56 cents.
    • August 21/2020- 3 days later Director Michael Constantino purchases 34k shares at 0.68 cents.
    • August 24/2020 - Again 3 days later, CEO John Temperato purchases 70k shares at 0.69 cents.
    • September 14/2020 - Again Director Mark Sirgo purchases an additional 148k shares at 0.64 cents.

    At the end of September William Blair wrote a 56 page research paper reporting that they have possible transformative solutions to Celiac and SBS (Short Bowel Syndrome) evaluating the company at a risk-adjusted fair value of 5 dollars per share. 9 Meters estimates their sales for Larazotoide to exceed 1 billion by 2030 and would also be receiving royalties on top of that. With approximately 1% of the population dealing with Celiac Disease 9 Meters sees this as a significant market opportunity and it isn't being reflected in the current stock price.

    9 Meter Pipeline

    1) Larazotoide - A tight junction regulator and is used to assist in Adult Celiac Disease and is currently in Phase 3 of 9 Meters pipeline and they estimate clinical in the 2H of 2021. This is currently the only candidate in Phase 3 for treating Celiac Disease.

    2) NM-002 is a long acting GLP-1 assisting in SBS, and is currently in phase 2 on testing. Estimating clinical in 2H 2021. They are currently wrapping up phase 1 and phase 2 clinical testing studies of NM-002 any day now which will be released in Q4 2020 or Q1 2021. NM-002 has proven to reduce gastric time in tested patients with SBS. They believe that NM-002 could offer significant improvements over the existing therapy options of SBS, which currently require daily injections. 9 Meters estimates sales to peak at 500 million dollars depending on the effect of TPN reduction.

    3) NM-003 is a long acting GLP-02 orphan indicator, indication TBD and is currently in the preclinical phase but is expecting lead indication selection in 2H 2020.

    4) Immunomodulator is also an orphan indicator, indication TBD and is currently finished phase 1 with the lead indication selection to be release 2H of 2020.

    9 Meters Biopharma holds, what i believe to be an underappreciated pipeline with no existing products in Larazotoide being used to treat Celiac Disease.

    submitted by /u/theluckyowl
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    Market down trending

    Posted: 22 Oct 2020 08:10 AM PDT

    Hey guys. Now that the stocks are mostly trending down (at least for today). What stocks are you guys keeping an eye out for to buy in case the price keeps trending downwards? I'm personally looking out for amazon and Tesla.

    What is everyone's opinion on PLUG?

    submitted by /u/dreaming10
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