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    Thursday, September 2, 2021

    Stocks - r/Stocks Daily Discussion & Options Trading Thursday - Sep 02, 2021

    Stocks - r/Stocks Daily Discussion & Options Trading Thursday - Sep 02, 2021


    r/Stocks Daily Discussion & Options Trading Thursday - Sep 02, 2021

    Posted: 02 Sep 2021 02:30 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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    Alibaba makes up with the CCP: China's alibaba to invest 15 billion $ towards common prosperity until 2025

    Posted: 02 Sep 2021 05:43 AM PDT

    https://www.reuters.com/world/china/chinas-alibaba-invest-155-bln-towards-common-prosperity-2021-09-02/

    SHANGHAI, Sept 2 (Reuters) - China's Alibaba Group (9988.HK), will invest 100 billion yuan ($15.5 billion) by 2025 in support of "common prosperity", it said, becoming the latest corporate giant to pledge support for the initiative driven by President Xi Jinping.

    Beijing has been encouraging companies to share wealth as part of the effort to ease inequality in the world's second-largest economy. Other companies that have made similar announcements include Tencent Holdings (0700.HK), which also pledged 100 billion yuan, and Geely Automobile (0175.HK). read more

    The government-backed Zhejiang News website said Alibaba's funds will go towards areas such as subsidies for small and medium-sized enterprises and improving insurance protection for gig economy workers such as couriers and ride-hailing drivers.

    It will also set up a 20 billion yuan "common prosperity development fund", the newspaper said, with Alibaba confirming the report.

    The e-commerce giant and its tech rivals have been the target of a wide-ranging regulatory crackdown on issues ranging from monopolistic behaviour to consumer rights. Alibaba was fined a record $2.75 billion in April over monopoly violations.

    submitted by /u/WFCtothemoon
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    I Put $50K into The Market Today and I’m Happy!

    Posted: 02 Sep 2021 09:55 AM PDT

    I've been scared to jump in, and I finally did it today. I put $25K into VTI and $25K into QQQ. If any of these ETF's dip 5%, I plan to put $5K more. I know everything is at all-time high, but these ETF's keep going higher and I feel I've missed enough gains. Don't try to time the market. When QQQ was at 300, I thought it was too high and waited for a pullback, it kept going higher and higher, and I ended up buying it at $381/share today.

    submitted by /u/DonnaShirley
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    Robinhood investors are propping up this stock market, says JPMorgan

    Posted: 02 Sep 2021 06:54 AM PDT

    We are almost two days into what has historically been a bummer of a month for stock investors. Given the list of worries piling up, and those include Friday's jobs data and the shadow of last September's nasty 10% slide, "the market is likely to be bound for choppiness," any way you slice it, notes MarketWatch's Mark DeCambre.

    Yet investors are hanging in there, and who can blame them as there just aren't a ton of alternatives. In a fresh missive, former bond king Bill Gross said Treasuries have joined cash in the "trash" pile, with the yield on the 10-year note TMUBMUSD10Y, 1.292% destined to climb. And he warned equities could join that club, barring "double-digit-plus" earnings growth. Onto our fear-not call of the day from JPMorgan strategists who say that until retail investors stop charging into stocks, markets probably don't have too much to worry about.

    "What could cause an equity market correction? This question is admittedly difficult to answer. So far this year, retail investors have been buying stocks and equity funds at such a steady and strong pace that makes an equity correction looking rather unlikely," wrote Nikolaos Panigirtzoglou and a team of strategists in a note late Wednesday.

    The strategists point to year-to-date equity fund flows of nearly $700 billion, or more than $1 trillion annualized, well above the prior 2017 record high of $629 billion. Those flows have not only pushed stocks higher, but forced other investors into equities, explains Panigirtzoglou and the team. And we're not talking just any old retail investor. Hello, Robinhood HOOD, 0.86% traders.

    https://www.marketwatch.com/story/aggressive-young-investors-are-helping-keep-a-correction-at-bay-says-jpmorgan-11630579921?mod=home-page

    submitted by /u/Wilingaway
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    What would it take for Apple to lose their top 10 spot in the S&P500?

    Posted: 01 Sep 2021 05:58 PM PDT

    As you know, apple has been the biggest company for quite a while now. It is very difficult for me to envision them losing this spot for like the next 20 years at the very least.

    What do you guys think it would take for Apple to drop out of the top 10 in the s&p500?

    submitted by /u/joeroganthumbhead
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    Any stocks under $10 a share that you like?

    Posted: 02 Sep 2021 08:38 AM PDT

    I have lots of blue-chip stocks in my portfolio, but I'm looking to buy some cheap stocks - preferably $10 or less - that could (hopefully!) grow exponentially over the next few years.

    I recently bought some shares of Crexendo ($CXDO) at $6.00, and some shares of Iteris ($ITS) at $5.76. However, I'm looking to invest in one or two more companies.

    Any companies that y'all have your eyes on?

    Thank you in advance.

    submitted by /u/Gretfree
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    PsychoMarket Recap - Thursday, September 2, 2021

    Posted: 02 Sep 2021 01:07 PM PDT

    Stocks once again traded, mixed, this time with the tech-heavy Nasdaq (QQQ) modestly underperforming relative to the S&P 500 (SPY) and Dow Jones (DIA) both of switch had a last minute rally to close barely on the green. The Russell 2000 (IWM), which tracks the performance of small-caps, outperformed the three major indexes, rising 0.68%. Following the Federal Reserve's annual Jackson Hole Symposium last week, market participants are anxiously waiting for the August Jobs Report, which will further illuminate the state of the labor market, a key factor in the Fed's decision-making regarding a potential taper timeline.

    ADP, a leading human services and payroll management company, released their monthly private job report, which estimated that the US gained 374,000 jobs in August, far short of estimates of 600,000, though an improvement over 326,000 last month. Most of the new jobs came from leisure and hospitality, which added 201,000 positions in a somewhat hopeful sign that an industry beset by a labor shortage continues to recover. Education and health services combined to add 59,000, with employment dented by a surge in Delta variant cases. This sets a backdrop for the official August Jobs Report, set to be released on Friday. Economists estimate 756,500 jobs will be added, which would represent a slowdown compared to the 943,000 jobs added in July.

    Mike Loewengart, managing director of investing strategy at E-Trade Financial, wrote in a note to clients, "The private payroll numbers have been all over the map during the pandemic. But with so much pressure on improvement on the labor market front coming from the Fed, this could send a signal that jobs growth is stagnating. That's likely a good thing for the markets, though, as it means easy money policy continues."

    Members of the Fed have consistently signaled they will be looking especially close at labor market data to determine when to start tapering the pandemic-era quantitative easing program. Federal Reserve Governor Christopher Waller said the August Jobs Report could be his signal to hit the "substantial further progress mark" the Fed stipulated in December and begin tapering. He said, "I think that one more good job report if it's in the 850,000 to 1 million range will be sufficient to claim substantial further progress in employment for tapering." As I have said multiple times in the past, personally, I remain bullish even during tapering talk, I think the real test for equities will come when interest rate hikes start being discussed.

    Highlights

    • Amid regulatory crackdown and a falling stock price, Alibaba (BABA) committed to spending the equivalent of roughly $15.5 billion by 2025 towards the Chinese Communist Party's drive to "common prosperity".
    • Walmart (WMT) bumped hourly wages by $1 to an average of $16.40 an hour as the holiday season, the most important time of the year for retailers, is set to kick off.
    • Yesterday, I talked about Ford Motors (F) cutting back production due to chip shortages. Today, General Motors (GM) followed suit and announced it would be cutting production goals due to the global shortage in critical semiconductor components.
    • A Federal Judge ruled the Apple (AAPL) must face a class-action lawsuit alleging the Siri recorded private conversations due to "accidental activation".
    • Nvidia's (NVDA) Broadcast app, a popular tool for online live-streamers is updating the app to improve noise removal, support more cameras, and reduce the amount of VRAM used by the app. A spokesperson for Nvidia said, "The new update addresses this with dedicated training sound profiles to retain that speech while removing the unwanted background noise."
    • According to Bloomberg news, Tesla (TSLA) was forced to temporarily halt operations at its Shanghai factory last months due to the global shortage of semiconductors. This is affecting car manufacturers the world over.
    • Toyota, the world's largest car manufacturer said it would slash global production for September by roughly 40%, again due to the chip shortage.
    • **Please note that current stock price was written during the session and may not reflect closing prices*\*
    • Bill.com (BILL) target raiosed by BTIG Research from $290 to $310 at Outperform. Stock currently around $286
    • Costco (COST) with four target raises. Stock currently around $460
      • Jefferies Financial from $500 to $525 at Buy
      • Oppernheimer from $480 to $500 at Outperform
      • Telsey Advisory Group from $465 to $470 at Outperform
      • Robert W Baird form $475 to $500 at Outperform
    • Okta (OKTA) with a host of target raises. Average price target $300 at Buy. stock currently around $270
    • Workday (WDAY) target raised by Jefferies Financial from $300 to $320 at Buy. Stock currently around $270

    "Don't Let Yesterday Take Up Too Much Of Today." – Will Rogers

    submitted by /u/psychotrader00
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    Is TSM a strong buy?

    Posted: 02 Sep 2021 08:32 AM PDT

    TSMC is the world's largest contract chip manufacturer, making 13 million units a year for the likes of Apple and NVIDIA. It's not only Taiwan's biggest company, it's now the largest stock in the MSCI Emerging Markets Index, bigger even than China's Alibaba and Tencent. South Korea's Samsung is the only company to match TSMC in terms of semiconductor production.

    The global shortage in semiconductors is affecting everything from electric vehicles to smartphones, and there is no obvious end in sight. This is great news for the likes of TSMC whose shares have risen 50% in a year. But Morningstar analysts still think the shares are undervalued. The Taiwanese company also has a wide economic moat because it could command higher prices and has a lower cost base than rivals.

    So, are semiconductors companies good long term investments? ETFs would be better than just TSM?

    submitted by /u/bluesky_03
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    My portfolio is too deep on Semiconductors. What other sectors have similar proven successful track records post-March 2020?

    Posted: 02 Sep 2021 08:14 AM PDT

    I've invested in so many semiconductor companies because they've all been flourishing. It's so easy for me to search by this industry, find companies I like, and have faith in them.

    When I search other sectors, I struggle to find good investments, I really got to dig deep. Which is fine, but I'm wondering if anyone can point me into the direction of other industries with plenty of winners.

    Cybersecurity? Financial technology? IT? These are some of my hunches from discussion I've seen on this sub

    submitted by /u/adambrukirer
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    (FB) WhatsApp hit with record 225 mln euro Irish privacy fine

    Posted: 02 Sep 2021 06:39 AM PDT

    https://www.reuters.com/technology/irish-data-privacy-watchdog-fines-whatsapp-225-mln-euros-2021-09-02/

    Ireland fined Facebook's WhatsApp a record 225 million euro ($266 million) on Thursday for privacy breaches after the EU privacy watchdog pressured the country to take a tougher line with a bigger penalty.

    submitted by /u/Eaglesby100
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    MA and V why these stocks keep declining they should be a good long term holding stocks

    Posted: 02 Sep 2021 11:13 AM PDT

    MA and V these two stocks have been declining constantly for the past few weeks, they have great fundamental and solid balance sheets. Is there any concern and reasons to make them going down? I am buying at these level because their revenue and eps grow are still ongoing, and they can still expand their revenue sources.

    submitted by /u/coolcomfort123
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    Documenting my trading/semi-investing style. Looking for feedback and maybe a create a wiki of sorts for different investing styles.

    Posted: 02 Sep 2021 12:01 PM PDT

    Context - Not a finance savvy guy, have been trading/investing for a while and have interest in markets in general. I depend on multiple Experts & community for analysis. This post is also more of a documentation for me, so that i can evolve the process for better.

    This strategy is specifically for one of my brokerage ac (its theme is aggressive, tech oriented trading)

    Steps in vetting a ticker:

    1. Keep an updated bucketed watchlist of stocks in Webull. (source the names from fin-twit folks, news, price movement from stock screeners)
    2. Find a stock of interest from the watchlist - say it was beaten up bad due to an earning or news or geo-politics (looking at you chinese dumptruck of companies)
    3. Check MorningStar for their Analysis and Fair-Value
    4. Check ValueLine for their Rankings, projection. (3 & 4 - a library card would most likely give you a subscription)
    5. Check SimplyWallst for valuation and that good looking snow-flake graph.
    6. Optional check quiverquant for any interesting data points - Politicians Trading, Institutional investor interest, WSB spike.
    7. SeekingAlpha - look up the ticker and read the crowd comments for blind spots, street info.
    8. If convinced, put the stock in a "Important" list to closely look and buy if necessary. Timeline is based on how that ticker or market is behaving.
    9. Dropped bad ? Sell put for that sweet iv. No extreme movements ? Leap - months or year in. Not sure ? Buy stocks for a set $ and watch.

    None of the above service needs a paid subscription, you can always work your way around it. (adblockers, library cards, free user account)

    What would you change on the above, looking for more ideas.

    submitted by /u/omcstreet
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    What are your goals? Why did you start investing/trading?

    Posted: 02 Sep 2021 11:27 AM PDT

    Hey everyone!

    How are you today?! Tell me about your day, if you wish! :)

    So you read the title, and now you're reading this! Hello!

    We all started investing / trading for various reasons, everyone's different!

    Maybe your goal is -

    To have (x) amount of cash before (x) age

    To have enough money for a "big" expense - Car, House, Travel

    To be financially free - which may be everyones goal!

    To help out your family members ... or to grow the future for your kid(s)..

    ... and obviously to make your money, make money for you!

    ... Repeating the title, but..

    Why did you start? What are your goals?

    — I'll go first!

    I started investing last year, because I'm young, wanted a new hobby to discover, and this money could help me out later in the future to buy the "big" expenses.

    What is yours!?

    — also, when did you start investing?!

    Looking forward to read your responses!

    ——————————————————

    Have an amazing day!

    Take care!

    Stay safe!

    • Happy investing / trading! :)

    submitted by /u/coolin68
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    What are some stock company's product/services that you use?

    Posted: 02 Sep 2021 09:16 AM PDT

    I'm a big believer in investing in what you know and use. For examples, I shop at Dick's Sporting Goods often, drink Celsius Energy drinks and listen to Spotify daily.

    Outside of the obvious big tech names like Google, Microsoft and Amazon, what are some stocks in which their product/service you use on a near daily basis?

    submitted by /u/sschmidt17
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    Is it possible to create a sentiment timeline of published articles and stock daily returns to evaluate correlation in Tensorflow?

    Posted: 02 Sep 2021 01:27 PM PDT

    I´m interested in finding the correlation of high prestige websites such as NYT, CNN, WSJ, etc with the daily stock return through sentiment analysis.

    My idea is the following:

    1. Download all article from about 20 websites in a given time frame
    2. Classified them in groups using keyword according to industries in stock market sector and some specific ETF without mixing websites
    3. Use Tensorflow to build a Sentiment Timeline for each group
    4. Calculate daily returns and build timeline
    5. Calculate correlation between time series and sentiment time lines

    The result would be a matrix where I could check which website reflect for better or worse the behavior of specific sector or ETF through time.

    Does this sound feasible? I have never done anything like it and it would be my first project, I have no trouble spending 6 months at it but I would appreciate opinions based on your experience before starting.

    Thank you,

    submitted by /u/Reneml
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    I have a question about my stock portfolio that was gifted to my wife and I. Please help!

    Posted: 02 Sep 2021 01:12 PM PDT

    When we got married back in 2017, one of our wedding gifts was 100 shares of GE stock. At the time it was valued around $33 a share. We recently received a check for about $29 a while back and decided to look out our account for the first time ever, since we kinda just left it in the back of our minds. Now it says that our shares are worth ~$105, but we only have 13 instead of 100. I think this may having something to do with the "reverse-split" that happened, but I have no idea what that means. I'm way outside of my wheelhouse here. Can someone explain to me in layman terms what's going on here? Additionally, looking at the share prices history on Google says that our shares were worth $145 back when we got them, but I know for a fact that wasn't the case. Very confusing!

    submitted by /u/McPresh
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    Does this strategy make sense or am I missing something?

    Posted: 02 Sep 2021 01:05 PM PDT

    A stock I like and want to hold for the long term is currently trading at $3.78 a share. Jan $3 2023 LEAPS are only $1.63 per contract. If I just buy all LEAPS as opposed to shares, isn't that just giving me the shares for $1.63 per as opposed to $3.78...aka more leverage for cheap?

    submitted by /u/NewBlock
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    Why are $MDLA options so cheap?

    Posted: 02 Sep 2021 08:01 AM PDT

    MDLA is announcing earnings tonight. It usually fluctuates ~10% around earnings. Yet options are $0.10, cheapest I have seen.

    Maybe because recently the stock has been overly stable around $33. Why is that the case? Why is the stock so non-active recently despite its volatile history.

    Is this an opportunity?

    submitted by /u/jacklychi
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    How to decide when to buy a stock you believe...

    Posted: 02 Sep 2021 07:49 AM PDT

    Just bought Nvidia about a month ago and only put $775 in (not that much I know, only 4 shares) but am wishing I had put more in. I don't see the price going down a significant amount anytime soon (if at all). I've told myself I would not buy at a high, especially an all time high. I guess I'm more looking for a reason why I SHOULDN'T buy more shares... Thoughts?

    submitted by /u/Daimonfire
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    Bright Health Care Group - a long term growth and value play in the health care sector.

    Posted: 02 Sep 2021 12:16 PM PDT

    Fair warning I did post this in Wall Street Bets as well but in my opinion this is a good long term investment with expansion to 29 new markets next year...

    What it is:

    Bright Health Group, Inc., an integrated care delivery company, engages in the delivery and financing of health insurance plans in the United States. It operates in two segments, NeueHealth and Bright HealthCare. The company offers individual and family, Medicare, and employers insurance plans. It also operates 28 managed and affiliated risk-bearing primary care clinics.

    Numbers that Matter:

    Current Market Cap: 5.84B
    Revenue: 2.7B
    Quarterly Revenue Growth: 275.20%
    Total Cash: 1.79B

    2018 Revenue: 130,632,000
    2019 Revenue: 280,673,000
    2020 Revenue: 1,207,320,000

    OpEx: Trending down as a percentage of revenue in 2020 (34%) than 2019 (64%)

    Diluted EPS (ttm): -2.04 (but they are in growth mode)

    Other interesting stuff:

    They're valued at 5.84 Billion, they have 2.7B in revenue and 1.79B in cash!

    The Play:

    • Shares in a swing trading account
    • Shares in my long term retirement account
    • I'm in the Feb 18 '22 $12.50 calls and some Feb 28 '22 $20 lottos.

    Trade/Invest/Gamble at your own risk. I just like the stock.

    submitted by /u/Super_Elk9030
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    AEO - American Eagle Outfitters down 12% after beating all earnings in 2nd record high.

    Posted: 02 Sep 2021 06:27 AM PDT

    AEO has been beaten up lately but holds very strong earnings:

    • Record revenue of $1.19 billion increased 35%
    • Operating income reached an all-time second quarter high of $168 million
    • Higher full-priced sales, reduced promotions and controlled costs fueled gross margin expansion to 42.1%
    • Aerie net revenue increased 34%, operating income rose 132%, reflecting a 21.0% operating margin
    • Net revenue rose 35%, operating income was up 234%, reflecting a 23.5% operating margin

    The company has been constantly proven their competency and IMO this is a bargain. I am not really a retailer fan but I will add some share to this. Their forward PE is only 12. Any thoughts?

    submitted by /u/CompetitivePumpkin3
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