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    Stocks - r/Stocks Daily Discussion & Options Trading Thursday - Mar 03, 2022

    Stocks - r/Stocks Daily Discussion & Options Trading Thursday - Mar 03, 2022


    r/Stocks Daily Discussion & Options Trading Thursday - Mar 03, 2022

    Posted: 03 Mar 2022 02:30 AM PST

    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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    Amazon closing physical stores - cannot be all things and will not invade every industry successfully

    Posted: 03 Mar 2022 04:03 AM PST

    Over the last year or two I have seen news of Amazon trying to stretch into every sector imaginable from physical retail to pharmacy etc. often there move into a new space was followed by a refrain of how they will crush existing businesses in that space and take it over, much like they took over the online retail space.

    Now that they have been closing stores it is an important lesson that even Amazon can stretch themselves too far and it is impossible to be all things to all people. As a holder of CVS and SPG (malls), two big would be Amazon competitors, it is validating to see that Amazon cannot successfully infiltrate every segment. And it is a good reminder to investors that just because a juggernaut enters a new space, they are not guaranteed to successfully dominate.

    https://www.reuters.com/business/retail-consumer/exclusive-amazon-close-all-its-physical-bookstores-4-star-shops-2022-03-02/

    submitted by /u/Didntlikedefaultname
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    On this day 13 years ago, Barack Obama almost perfectly calls the bottom of the stock market before the longest bull market in US history.

    Posted: 03 Mar 2022 06:31 AM PST

    VIDEO

    If you made a $10,000 investment at the time in the following you would have today (dividends reinvested, where applicable):

    • S&P 500: (SPY): $76,465
    • Apple (AAPL): $609,908
    • Amazon (AMZN): $469,370
    • Google (GOOGL): $158,769
    • Netflix (NFLX): $734,059
    • Pepsi (PEP): $50,192
    • Visa (V): $ 161,317
    • McDonald's (MCD): $67,206
    submitted by /u/Beetlejuice_hero
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    Etsy raising fees Jan 11, Sellers not happy (including me)

    Posted: 03 Mar 2022 06:14 AM PST

    Etsy is raising transaction fees from 5% to 6.5% a 30%increase.
    This is not the only cost to selling a item.
    On average I lose about 16.5% of the total sale amount to costs/fees.
    Which will increase to about 18% Jan 11th.

    I personally am going to look into setting up my shop elsewhere and might raise my prices on Etsy.

    Here is a thread on the Etsy reddit with plenty of sellers unhappy and thinking about leaving: https://www.reddit.com/r/Etsy/comments/t0lsz2/beware_transaction_price_increasing_to_65/

    I don't think this is going to have a big impact on Etsy's revenue.
    But this is going to negatively impact the marketplace on Etsy because sellers will offset the cost to buyers and thus make items more expensive.

    submitted by /u/teuntie8
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    For those of you who believe in technical indicators- Nasdaq 100 chart to produce first 'death cross' in nearly 2 years

    Posted: 03 Mar 2022 12:48 AM PST

    The Nasdaq 100 Index NDX, +1.70% chart is set produce a bearish "death cross" signal on Wednesday, for the first time in nearly two years. A "death cross" appears when the 50-day moving average (DMA), a widely followed short-term trend tracker, crosses below the 200-DMA, a longer-term trend guide. Many chart watchers view a death cross as marking the spot that a pullback transitions to a downtrend. The technology-heavy Nasdaq 100's 50-DMA is set to open at 15,054.01, down from 15,089.92 on Tuesday, according to FactSet, while the 200-DMA is set to rise to 15,093.37 from 15,089.91. Through Tuesday, stock charts of 50 of the index's components have produced "death cross" patterns. The last "death cross" appeared on April 30, 2020, but that was a little more than a month after the index already closed at its COVID-19 bottom of 6,994.29 on March 20, 2020. That "death cross" was erased three weeks later with the appearance of a "golden cross," in which the 50-DMA rose back above the 200-DMA. The last "death cross" before that one appeared Dec. 3, 2018, and the index fell another 16% over the next three weeks before bottoming. The Nasdaq Composite COMP, +1.62% is currently under the influence of a "death cross," but the S&P 500 SPX, +1.86% and Dow Jones Industrial Average DJIA, +1.79% aren't, yet.

    https://www.marketwatch.com/story/nasdaq-100-chart-to-produce-first-death-cross-in-nearly-2-years-2022-03-02?cx_testId=22&cx_testVariant=cx_1&cx_artPos=8&mod=home-page-cx#cxrecs_s

    submitted by /u/Johnblr
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    What am I buying when I buy Blackstone (BX) stock?

    Posted: 03 Mar 2022 06:04 AM PST

    There are other businesses (hedge fund solutions, credit) but about half of revenue comes from real estate and the other half from private equity.

    Management emphasizes Fee Related Earnings ("FRE") and Distributable Earnings ("DE"). For FY21, there was $7B in management and advisory fees plus performance revenue minus $3B in compensation and other expenses for FRE of $4B. There was also $4B in "realized performance revenues" (what is this?) which when added to FRE of $4B, net of expenses, was about $6.2B in DE.

    Could someone please explain to me what these metrics mean? Which ones include revenue from real estate (as opposed to revenue from private equity)?

    Also BX doesn't deploy much capital in its PE business and generates revenue as a percentage of clients funds. But it would seem that buying lots of real estate would require lots of capital no? For $1 invested in BX roughly what percentage is valued on the discounted future cash flow of management fees vs the value of underlying real estate/future rents from real estate? Am I thinking of this correctly?

    Thank you very much.

    Q4 21: https://s23.q4cdn.com/714267708/files/doc_financials/2021/q4/Blackstone4Q21SupplementalFinancialData.pdf

    submitted by /u/compoundluck
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    Question: what do you think about copy trading?

    Posted: 03 Mar 2022 02:10 AM PST

    I don't have any stock market experiences so i thought, what if i would try copying others? I've heard that there are some platfrms for this specific purpouse. What do you think about all this? Thanks.

    submitted by /u/WroooooooM
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    sell or hold $sbux?

    Posted: 02 Mar 2022 08:51 PM PST

    as the title states… have quite a few shares of starbucks and was wondering whether to hold or sell.

    stock has been beaten down and i'm worried about the long term of the company. maybe i'll wait till it goes back up a bit? not sure.

    what's your input?

    submitted by /u/j-dawg1998
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    Draft Kings sell?

    Posted: 02 Mar 2022 11:18 PM PST

    So, I'm currently down about 50% on DKNG. I've been seeing on this sub that this is the least favourable betting app, I want to reinvest into another betting app. Does anyone have any suggestions I can look at?

    submitted by /u/HugeChief
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    Despite being about -30k in 2021, my 1099 Form shows +10k due to Wash Sales. How similar do investments have to be to trigger a wash sale?

    Posted: 02 Mar 2022 10:42 PM PST

    My questions:

    Would a purchase in the same industry, but different company be considered a wash sale? For example American Airlines and Jet Blue?

    What about something slightly different like a cruise line vs airline?

    Who make these decisions? Is there a guideline?

    I made about 80k in 2020 flipping travel stocks, but I simply had no idea about the wash rule. There were times I sold for like a 5 cent loss, and even those probably triggered wash sales.

    I feel so stupid, but glad to have learned about it now at least.

    submitted by /u/MakeZulrahGr8Again
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    Stock options as compensation for employees

    Posted: 02 Mar 2022 09:12 PM PST

    When a CEO, or other employee is granted stock options, how do they work?

    I know there's a vesting period and an expiration date.

    Do CEOs or employees that exercise and then sell their options on the market create new shares of stock?

    Is this acting as a way for the company to add more stock to the market for buying and selling without diluting by manipulating available shares with splits and whatnot?

    submitted by /u/FateEx1994
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    Thought on INMD? Why is it viewed as risky?

    Posted: 02 Mar 2022 08:01 PM PST

    I have a 2% position in INMD at cost basis of $66, so I'm a little in the red.

    I've noticed that it's bottom seems to be about $39 or so.

    Do you think its currently worth adding a few shares?

    Also it's fundamentals look good to me and supposedly it doesn't have debt.

    It also has steady revenue growth, etc.

    Why is it viewed as risky or overvalued?

    It's gross margin is like 70% according to macrotrends.

    And it has good free cash flow.

    I mean it's down 34% ytd?

    Just wondering.

    Is anyone else invested in INMD?

    Thanks.

    submitted by /u/apooroldinvestor
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