Skip to main content

Posts

Tesla's Q4 results, BuzzFeed partners with Meta and more

In this week's issue we cover Tesla’s Q4 results, BuzzFeed's recent run and more.  According to the Wall Street Journal, BuzzFeed (BZFD) would reportedly receive millions from Meta Platforms (META) in exchange for attracting additional content creators to the site.  An upbeat earnings report for the fourth quarter of 2022 has put the intense demand worries that sent Tesla (TSLA) shares tumbling in 2022 in the rearview mirror. Tesla earnings topped analysts' projections, and the company's recent price cuts are largely responsible for the uptick in demand.  Visa (V), Mastercard (MA), and American Express (AXP) reported earnings as investors evaluate the state of the economy based on consumer spending. Southwest Airlines (LUV) troubles continue. Chipotle is gearing up for burrito seasons. Watch the video to get the insight. Good Trading! Trading Risk Disclaimer All the information shared is provided for educational purposes only. Any trades placed upon reliance of Sharper

DOJ Targeting Google's Ad Business in Second Antitrust Suit

In its second antitrust suit against Google in less than two years, the U.S. government has set its sights on the company's advertising division.  The case, the first of its kind under the Biden administration, challenges Google's right to monopolize the online advertising market.  Let's see what happens next.  Good Trading!  Trading Risk Disclaimer All the information shared is provided for educational purposes only. Any trades placed upon reliance of SharperTrades, LLC are taken at your own risk for your own account. Past performance is no guarantee. While there is great potential for reward trading stocks, cryptos, commodities, options, forex and other trading securities, there is also substantial risk of loss. All trading operations involve high risks of losing your entire investment. You must therefore decide your own suitability to trade. Trading results can never be guaranteed. SharperTrades, LLC is not registered as an investment adviser with any federal or state re

Wash Sale

The term wash sale refers to a transaction in which a person sells or trades a security at a loss and then re-purchases the same stock or security, or obtains a contract or option to do so, within 30 days before or after the date when the loss-generating investment was sold. This window of time account as a total of 61-day wait period. Another scenario that leads to a wash sale is when a person sells a security and then, during the 61-day waiting period, their spouse or a business they control purchases a substantially identical investment. Under Internal Revenue Service (IRS) regulations, a tax deduction for a loss on a securities sold in a wash sale is not allowed. This provision is known as the wash-sale rule. The rule is intended to discourage investors from making an investment loss in order to claim a tax deduction while effectively keeping their stake in the securities.

Kal's Option Trade of the Week - QQQ New Year's Iron Condor

    Happy New Year everyone, wishing you all a healthy, happy and profitable 2023!  I like to start every year by putting Iron Condors on in all the major indices. Since QQQ (NASDAQ) is the most volatile right now, we'll start with that one. :) Watch  the video  to get the trade details and learn. Hope you enjoy it! Kal Trading Risk Disclaimer All the information shared is provided for educational purposes only. Any trades placed upon reliance of SharperTrades, LLC are taken at your own risk for your own account. Past performance is no guarantee. While there is great potential for reward trading stocks, cryptos, commodities, options, forex and other trading securities, there is also substantial risk of loss. All trading operations involve high risks of losing your entire investment. You must therefore decide your own suitability to trade. Trading results can never be guaranteed. SharperTrades, LLC is not registered as an investment adviser with any federal or state regulatory agen

2023's Biggest Trade So Far: How We Caught It and Trade It

Today we cover a day trade from our premarket focus list: BIOR BIOR is today's big winner: +75% in just a few hours. Watch this video and see how we traded it, and found it, as we were building our watch list for the day (link inside). Good trading!  Trading Risk Disclaimer All the information shared in this video is provided for educational purposes only. Any trades placed upon reliance of SharperTrades.com are taken at your own risk for your own account. Past performance is no guarantee. While there is great potential for reward trading stocks, commodities, options and forex, there is also substantial risk of loss. All trading operations involve high risks of losing your entire investment. You must therefore decide your own suitability to trade. Trading results can never be guaranteed. This is not an offer to buy or sell stocks, forex, futures, options, commodity interests or any other trading security.

Butterfly Spread

Option strategy that combines both a bull and bear spread with a defined risk and capped reward. The most lucrative scenario for these spreads, which are meant to be market-neutral strategies, is for the underlying asset to remain stationary until option expiration. They either involve four puts, four calls, or a mix of both with three strike prices. Understanding Butterfly Spreads Option trading strategy.  An option is a financial instrument based on an underline asset (stock or commodity) value. Options contracts provide buyers a defined date to buy or sell the underlying asset. Butterfly spread strategy uses a combination of bull and bear spreads. It's a neutral method of using four options contracts with the same expiration and three different strike prices: at-the-money, higher and lower strike prices. Higher and lower strike prices are equally far from at-the-money option strike price. If at-the-money options have a $30 strike price, higher and lower options should be above a

Southwest Airlines Is Going South

Today we take a look at Southwest Airlines (LUV).  Watch this video to get the technicals.  Good Trading!  Trading Risk Disclaimer All the information shared is provided for educational purposes only. Any trades placed upon reliance of SharperTrades, LLC are taken at your own risk for your own account. Past performance is no guarantee. While there is great potential for reward trading stocks, cryptos, commodities, options, forex and other trading securities, there is also substantial risk of loss. All trading operations involve high risks of losing your entire investment. You must therefore decide your own suitability to trade. Trading results can never be guaranteed. SharperTrades, LLC is not registered as an investment adviser with any federal or state regulatory agency. This is not an offer to buy or sell stocks, cryptos, forex, futures, options, commodity interests or any other trading securities.

Bond Fund

A bond fund is a mutual fund invested solely in bonds . Many investors prefer bond funds versus buying individual bonds. Bond mutual funds are like stock mutual funds in that you combine your money with other investors and a professional invests it based on the best chances. Some bond funds try to replicate the performance of the market as a whole by investing in a wide range of bonds issued by entities as diverse as the United States Treasury, state and local governments, businesses, and money market funds. Short-term Treasury bond funds and corporate high-yield bond funds are two examples of specialized bond funds that invest only in those segments of the bond market where they see the greatest potential for growth. Bond funds, regardless of their focus, invest in a wide range of bonds and other securities, trading in and out as market conditions dictate rather than keeping their holdings until maturity. Monthly payments reflect the fund's bond composition and payment schedules.

Volume-Weighted Average Price (VWAP)

An intraday technical indicator that displays the daily average price at which a security has traded in terms of both volume and price. The VWAP resets at the beginning of each new trading session. VWAP is an important indicator, especially for day trading, because it provides traders with price information into both the trend and value of a security.

Uptrend

An uptrend is the upward price movement of a financial asset, characterized by price making higher highs and higher lows. This means that after a bullish run, the lows following a pullback will still be near or above the highs that were seen earlier in the trend. The uptrend is regarded intact as long as price continues to make higher highs (during the run) and higher lows (during the pullback). Some traders choose to trade solely during uptrends. These type of long-trend traders employ a variety of tactics to capitalize on the price's proclivity to make higher highs and lower lows. They enter trades earlier as price begins the raise; they manage their position(s) during the bullish run by adjusting their stops (in case price suddenly reverses); they exit and take profit (fully or partially) as price loses strength and starts to reverse direction.

52-Week Range

The 52-week range is a data point commonly published by financial news media, that includes the stock's lowest and highest price throughout the last 52 weeks. Investors use this data to estimate the level of risk and variation they might encounter over the course of a year if they decide to purchase a particular stock. Investors can locate a stock's 52-week range in the quote summary that a broker or financial information website provides for the stock. This data can be seen on a pricing chart that displays one year's worth of price data.

2023 Stock Market Forecasts Challenges, But Smart Stock Pickers Could Thrive

The stock market suffered large losses in 2022. Uncertainty surrounds 2023. Due to Fed rate hikes, the Russia-Ukraine war, and recession fears, 2023 is expect to be somewhat a tumultuous trading year. Uncertainty offers opportunity. There's always a bull market on Wall Street. As the market struggles, smart investors can outperform. Most 2023 stock market estimates display a mix of optimism and concerns  and forecast the S&P 500 at 3900 by 2023.  With so much uncertainty, a cautious stance is wise. Long-term investing trends are changing. Investors must monitor sector changes and choose wisely. As tech stocks seek new footing, some analysts anticipate value stocks outperforming growth companies. Other experts foresee strong infrastructure stocks and M&A prospects in 2023. 2023: Market recovery? All major indexes fell the most since the 2008 financial crisis in 2022.  The Dow Jones Industrial Average fell 8.8% due to its underexposure to technology stocks. The Nasdaq composi

Book Value

When calculating book value, businesses offset the asset's depreciation against the cost of carrying the asset on their balance sheets. Therefore, book value can also be viewed as a company's net asset value (NAV), which is determined by subtracting liabilities and intangible assets (such as goodwill and patents) from its total assets. For an initial investment, book value may be gross or net of costs like trading fees, sales taxes, service fees, and so forth. The total common shareholders' equity less the preferred stock is divided by the total number of the company's common shares to arrive at book value per share. Book Valuation Book value is the accounting worth of a company's assets less its liabilities. Book value is the asset's original historical cost recorded in the books. Accounting measurements may keep an asset's book value the same over time, while asset utilization might increase a company's book value. Comparing a company's book value

Don't wait for 2023 to cut your taxes. Do it before 2022 ends

2022 has been a rough year for investors.  Year-to-Date the S&P 500 is down almost 20%, the Nasdaq 100 is down 34%; large caps such as Google (GOOG), Amazon (AMZN) and Tesla (TSLA) lost 41%, 54% and 65% respectively.  That's not a pretty picture. We can all agree on that. But there's a silver lining here.  The IRS permits individuals with red portfolio pages to reduce gains and income using their investment losses.   In fact, investors can take advantage of what is called tax-loss harvesting and lower their 2022 tax bill until the end of the year.  Tax-loss harvesting explained Tax-loss harvesting requires knowledge of capital gains taxation. So, how's capital gain taxed? A capital gain is realized when investors sell a taxable investment for more than they paid for. Profits from investments held for a year or less are taxed at the regular income rate of the individual. Long-term capital gains rates range from 0% to 23.8%, depending on the individual's income. Tax-

Volume

The amount of an asset or security traded during a specified period of time, usually over the course of one day. For example, stock trading volume refers to the total number of shares of a securities traded during the entirety of one trading session (from open to close). Trading volume, as well as fluctuations in volume over time, are key information for technical traders.

Bullish Engulfing

A bullish reversal pattern made of two candles. It can be recognized when a little red candlestick that represents a bearish trend is followed the next day by a large green candlestick. The large green candlestick opens lower than the previous day's finish and closes higher than the previous day's opening, with the body of the latter completely engulfing or overlapping the former. The bullish engulfing is a bullish reversal pattern, especially when there's presence of significant volume increase on the engulfing day.

Standard & Poor's 500 Index

The Standard & Poor's 500 index, also referred as the S&P 500 or S&P 500 index, is a widely used index that measures changes in the state of the stock market. The S&P 500 index measures the performance of 500 of the largest publicly traded corporations in the United States. Because the index also takes into account other factors, it is not a precise list of the top 500 U.S. corporations by market cap. Nonetheless, the S&P 500 index is recognized as one of the finest indicators of the performance of significant American equities, and thus of the stock market as a whole.

Ticker Symbol

A ticker symbol, also called stock symbol, is a particular set of letters assigned to a security for trading reasons. Stocks that are listed on the NYSE are limited to four letters or less. Securities that are listed on Nasdaq typically have four characters, but may have up to five letters. The fifth letter of a five-letter symbol contains company information. The fifth letter can sometimes be used to identify the type of stock or security: A or B stand for NASDAQ stocks' A and B class shares, respectively, while V or Y denote shares represented by American Depository Receipts (ADRs). There is no discernible difference between symbols with two letters, and those with three, four or even five letters because they are simply a shortcut for describing a company's stock.

Breadth Indicators

Technical indicator used to determine the level of participation in price fluctuations of a stock index. Breadth indicators use mathematical algorithms to count the volume of advancing and declining stocks. Breadth indicators can either validate stock index price trends or signal coming price reversals by looking at how many stocks are rising or falling in price and how much volume these stocks are trading. Overview Breadth indicators don't provide trade signals, but rather an index's health. When a breadth indicator and stock index both rise, it indicates high price participation. This suggests the price surge may last. The opposite is true. A decreasing breadth indicator and a falling stock index indicate lower price participation, suggesting a price decline. Divergence between breadth and an index may signal a reversal. Fewer stocks following the index means that the stock index could change direction. Understanding breadth indicator Breadth indicators give traders and inves

Covered Call

A financial transaction that occurs when a call option seller also holds an equivalent quantity of the underlying securities. An investor who has a long position in an asset can then carry out this strategy by writing (selling) call options on that same asset to create an income stream. Since the seller can deliver the shares if the call option buyer decides to exercise, the investor's long position in the asset serves as the cover.

Volatility

Volatility is a statistical measure of the spread of a security's or market index's returns. In most circumstances, a security is riskier the higher its volatility. Volatility is frequently calculated using the standard deviation or variance of returns from the same securities or market index. Volatility in the financial markets is frequently correlated with significant swings in either direction. For instance, a market is considered volatile when it fluctuates by more than 1% over an extended period of time. The volatility of an asset is an important consideration when pricing options contracts.