Showing posts with the label Stocks

A Comprehensive Guide to Calendar Spreads and How to Use Them as a Powerful Trading Strategy

  Source:  Calendar Spread  ( A Comprehensive Guide to Calendar Spreads and How to Use Them as a Powerful Trading Strategy Introduction: What is a Calendar Spread and How Does it Work? Calendar spreads are among the most popular options strategies used by traders. They involve buying and selling options of the same underlying asset but with different expiration dates. Traders can use calendar spreads to capitalize on different market conditions, such as when they expect a particular stock to remain range-bound or when they expect a stock to make a big move in either direction. It is also known as a time spread and is used to capitalize on the expected movement of the underlying stock over time. For example, to buy a calendar spread on AAPL stock, one might choose to sell a front month call option and then purchase a back month call option. AAPL's current spot price is $100. If the spot price of AAPL moves up by 2% in the month the options are in-the-money, then t

How adopting a STOIC attitude can make you a better trader.

  "The happiness of your life depends upon the quality of your thoughts: therefore, guard accordingly, and take care that you entertain no notions unsuitable to virtue and reasonable nature." - Marcus Aurelius   How adopting a STOIC attitude can make you a better trader.   The above quote by Marcus Aurelius, a third-century Roman Emperor, encapsulates the central philosophy of Stoicism, an ancient Greek philosophy that emphasizes the importance of developing an attitude of acceptance, self-discipline, and emotional regulation. These principles are relevant not only to everyday life but also to trading in financial markets, where they can give traders an edge in the highly competitive and constantly changing environment. To succeed as a trader, one needs to develop a strong mental state that can withstand the ups and downs of the market. Mastering the mental aspect of trading can give traders a significant advantage over their competitors. This is where the wisdom of Stoicism

Why I'm short TWITTER (TWTR)

  (Shutterstock)   - Summary - Decline in US user growth makes this a precarious investment. Twitter faces serious claims it benefited from sex trafficking. New monetization plans are going to be hit or miss. Current valuation assumes continued revenue growth at unrealistic expectations. The entire market is due for a correction and the tech sector could be hard-hit. Overview Twitter (NYSE: TWTR ) has historically performed poorly as a stock in relation to the broader market and big tech, until last March and the pandemic bull run when it took off from the mid $20's to the mid $60's price it hovers at today. While catalysts such as strong quarterly earnings results and new monetization initiatives are valid, the outlook going forward is tilted towards more risk than reward.  Investment Thesis User Decline in US Average U.S. daily active users were down about 1 million to 37 million from 38 million for the quarterly period. As reopening trends continue, TWTR and other popular s

What is a CFD and where to trade CFDs in Canada? Everything you need to know.

 (Shutterstock) What is a CFD? CFD stands for Contract for Difference, a type of financial agreement that allows investors to speculate on the price movements of an underlying asset without taking ownership of it. A trader will open a long or short position in the asset, entering into an agreement with the CFD broker to exchange the difference in the price of the asset from when the contract was opened until it is closed. If the price of the asset moves in a favorable direction, the trader will make a profit, and if it moves in an unfavorable direction, the trader will suffer a loss. Should You Trade CFDs? CFD trading has several advantages that make it an attractive option for investors. Firstly, CFDs offer higher leverage than traditional financial vehicles, allowing traders to take significant positions with less capital at risk. Secondly, CFDs offer diversification as commodities, Forex, major stocks, and indexes are all available for trading from the same platform. Thirdly, CFDs

What are they smoking on Bay Street? Cannabis Stocks.

  (Shutterstock) A pipe dream?  Cannabis investors in Canada had their dreamy eyes set on pies in the sky since back in 2018 when the Canadian marijuana market was setting its roots. Earnings results have largely missed the mark across the board and some legal Canadian producers seem to be struggling to remain an ongoing concern at these levels of burning cash. Across the border, our American neighbors were similarly bullish over cannabis stocks in the follow-up to the 2020 election when Democrats gained control. President Biden has actually made very limited progress on cannabis reform and US-based stocks have underperformed as a result. On first look, these early results haven't been promising. Our view is that this is because the market potential has yet to be properly realized. The cannabis market is expected to be worth over $73 billion by 2027. This means investors can still get in on this cash crop relatively early. Cannabis Stocks - They aren't created equal. Cannabis

The Great Collapse Won't Be Their End. Tencent Is Poised To Rise Again.

(Spencer Platt/Getty Images News) - Summary - The TME share price overreacted to news of sanctions against it. After what happened to DIDI, Chinese crackdown worst-case scenarios were already priced in. The delisting narrative that instigated a lower price a few weeks ago has calmed down. TME is oversold in the midst of not yet recovering from a massive discount in share price which stems from the collapse of Archegos Capital Management in March 2021.   The company is driving shareholder value with an aggressive $1 Billion Stock Re-Purchase Program.   20% stake in Universal Music Group has big potential for payoff. Intro In our view, Tencent Music Entertainment (NYSE: TME ) remains one of the most undervalued Chinese listed companies on the New York Stock Exchange. In this article, we will detail why we think this stock is currently trading under its fair value and how upcoming developments, particularly the 20% stake in Universal Music Group, has the potential to support considerable