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Showing posts from March, 2022

30-Day SEC Yield (Date)

The fund's 30-day net investment income, expressed as an annual percentage rate based on the share price of the fund at the conclusion of the period. The 30-day yield is an estimate of investment income and may differ from the fund's actual income distribution rate.

Thematic

In finance, the term thematic means two things.  1. a method of investing that concentrates on topics or assets that are specifically relevant to a topic chosen using values- or standards-based criteria.  2. a method of investing that emphasizes sustainability-related topics or assets, such as those relating to clean energy, access to water, or healthcare.

McClellan Oscillator

The McClellan Oscillator measures market breadth by comparing the proportion of advancing and declining issues on stock exchanges like the New York Stock Exchange (NYSE) or the NASDAQ. The indicator is designed to highlight broad thrusts, or significant changes in index sentiment. Additionally, it aids in analyzing an index trend's strength using divergence or confirmation.

Unemployment

Unemployment is a state of affairs where a person actively seeks employment but is unsuccessful in doing so. Unemployment is seen as an important indicator of economic health. The unemployment rate is the most often used indicator of unemployment. It is determined by dividing the total number of employed people by the total number of unemployed people.

Watch How We Day Traded AMC and DATS for a Combined Gain of 60%

Today we take a look at the technicals of two day trades (AMC and DATS) that produces a good 60% gain in just a few hours. Watch this video to get the technicals, our trade progression and what to expect moving forward. 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,

Utility Sector

Sector investing provides targeted possibilities to invest in the stocks of companies in various sectors of the economy. Electric, gas, and water utilities, as well as businesses that produce or distribute power, are examples of companies in the utilities industry. Even though utilities are for-profit, private companies, they are extensively regulated and a part of the public utility system. Utilities are frequently held as long-term investments and used by investors to produce income through dividends.

Crypto Markets Update: Bitcoin, Ethereum and Solana

Today we take a look at the technicals for Bitcoin, Ethereum and Solana. Watch this video to get the technical insights. 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. From  Coinbase Bitcoin The world’s first cryp

Intrinsic Value

The value of an asset. instead of using the asset's actual market price, this metric is calculated objectively or through the use of a sophisticated financial model.

Trustee

A trustee is business or a person who is in charge of one or more accounts. The term trustee also refers to a member of the board of trustees who is ultimately in charge of the operations of a fund.

Treasury Bill

Negotiable, one-year or less, short-term debt obligations that are issued and guaranteed by the United States government.

YTD Return (with Load)

Year-to-date return on an investment, which includes appreciation as well as dividends or interest, less any applicable fees or charges.

Is PayPal a dead company? Not so fast. +19% gain in 4 days and more to come

Today we focus on PayPal (ticker PYPL). On March 14th 2022 we spotted a large dark pool activity of 2 million shares at 97.45. Dark pool activities, which we refer to as block orders , are institutional positions. Dark pools don't tell us the direction, just the presence of an institutional position.  How to we how to trade it? We have to wait for the breakout or break down confirmation. A breakout above a specific resistance level, gives us the indication that the trade is bullish. A break down below a specific support, level gives us the indication that the trade is bearish. With regards to PYPL, price was oversold (dropped from $310 to $92 in less than 8 month) and has been forming a base above 92.  Based on that analysis, and the presence of the dark pull activity, we initiated a swing trade (long).  On the following day, price popped the $101 breakout level, triggering a bullish confirmation. In four days price reached our three targets and produced +19% gain. Watch this

Portfolio

A portfolio is a collection of financial assets, such as securities, bonds, commodities, cash, and cash equivalents, such as exchange-traded funds (ETFs). The common belief is that the three main components of a portfolio are equities, bonds, and cash. Although this is frequently the case, it need not be the exception. Various types of assets, such as private investments, real estate, and fine art, may be included in a portfolio. A portfolio can be held and managed either by the individual who owns it, or by a money manager, financial advisor, or other finance expert.

Omega

Omega is a measure of options pricing, much like the Greeks for options, which track various aspects of the option itself. Omega expresses how much the value of an option changes relative to how much the underlying price changes. This determines how much leverage an options position has.

Underweight

In terms of trade and finance, the term underweight describes one of two scenarios. When compared to the weight of that security in the underlying benchmark portfolio, an underweight portfolio does not hold a sufficient quantity of that security. In situations where a security is anticipated to perform poorly, the term underweight can also apply to an analyst's assessment of the asset's potential performance in the future.

Standard & Poor's (S&P)

The corporation Standard & Poor's (S&P) is well recognized around the world for producing financial market indexes that are frequently used as investment benchmarks, serving as a data source, and issuing credit ratings for companies and debt obligations. It is most well-known for the well-liked and frequently mentioned S&P 500 Index.

Market Dynamics

Market dynamics are forces that have an effect on prices, producers and consumer behavior. These factors influence the supply and demand for a particular good or service in a market, which creates pricing signals. Any sector or government policy can be impacted by market dynamics. In addition to pricing, demand, and supply, there are other market dynamics. The main one is human emotions of fear and greed, and the decision-making process that arise from those emotions.

Negative Bond Yield

When an investor receives less money than the bond's original purchase price at maturity. A negative bond yield is a n unusual circumstance in which debt issuers are compensated for borrowing money. In other words, rather than receiving a return through interest income, the depositors or bond buyers are in fact paying the bond issuer a net amount at maturity.

Expense Ratio (Date)

Amount that shareholders pay annually for management and running costs of mutual funds, stated as a percentage of the entire investment.

Value-Added

The term value-added refers to the economic improvement a business makes to its goods or services before offering them on the market. Value added explains how businesses can charge more for their products or services than it costs to make them. Adding value to products and services is critical since it gives consumers a reason to buy, enhancing a company's revenue and bottom line.

Power Purchase Agreements (PPAs)

Power Purchase Agreements (PPAs) are financial arrangements made by a developer to design, obtain necessary approvals, finance, and install a solar energy system on a client's property for little to no cost.

United States Treasury Money Mutual Fund

A mutual fund that combines client funds to buy low-risk government assets that invests largely or entirely in U.S. government debt, such as Treasury bills and repurchase agreements. For investors looking to protect their principle or temporarily invest cash, U.S. Treasury money mutual funds are a popular choice.

Kal's Option Trade of the Week - FXI Short Put Vertical

This week we are going in with the Short Vertical option strategy on FXI (Chinese ETF). The reason for choosing this option trade is that we are betting that the current highly volatile market, due to the Ukrainian War and inflation, will hopefully die down over the next 30 days. We will bet the FXI ETF stops and heads up from here over the next 30 days. We are using a Short Put Vertical to trade that assumption. Watch this video to get the trade details. 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

Share Classes

Classes indicate ownership in the same fund but levies various fees. As a result, shareholders may be free to select the fee structure that best matches their individual requirements.

Asset-Backed Security (ABS)

A financial investment known as an asset-backed security (ABS) is one that is secured by a pool of underlying assets, typically those that produce a cash flow from debt such loans, leases, credit card balances, or receivables. It takes the shape of a bond or note and provides income at a fixed rate till maturity over a predetermined period of time. Asset-backed securities can be a substitute for other debt products, such as corporate bonds or bond funds , for income-seeking investors. Understanding Asset Backed Securities Asset-backed securities (or ABS) are a type of security that is backed by assets. The acronym "ABS" refers to a specific type of security that is backed by the collateral of an underlying asset, such as a securitized loan. The income (i.e. cash flows) used to make the regular interest payments, obligatory principle amortization, and full repayment of the principal at maturity is generated by the assets pledged as security. Lenders have the legal right to ta

Negative Growth

Negative growth is a decline in a company's sales or profits. It is also used to describe a country's economic downturn, which is indicated by a decline in its gross domestic product (GDP) during any particular quarter of a year. Negative percentage rates are frequently used to describe negative growth.

Tracking Error

The portfolio's active risk which computes the annualized standard deviation of the portfolio's excess returns over the benchmark.

Low Volume Pullback

A technical correction toward a support level that occurs on lower-than-average volume. Because of the low volume, traders frequently assume that the move is a pullback related to profit taking, rather than a reversal.

Price/Earnings to Growth Ratio (PEG Ratio)

The price/earnings to growth ratio (PEG ratio) is calculated by dividing a stock's price-to-earnings (P/E) ratio by the earnings growth rate over a given time period. In comparison to the more popular P/E ratio, the PEG ratio is used to calculate a stock's valuation while also taking the company's expected earnings growth into account.

Real Body (of a Candlestick)

The wide portion of a candle on a candlestick chart is its actual body. The real body encompasses the space between the opening and closing prices over a specific period of time. The candle is green (or white) if the close is higher than the open for the specified period of time. The candle is red (or black) if the close is lower than the open for the specified period of time.

YTD Total Return

Year-to-date return on an investment that includes appreciation as well as dividends or interest, less any applicable fees or expenses.

Technical Indicators

Technical indicators, which are utilized by traders who follow technical analysis, are algorithmic or pattern-based indications generated by the price, volume, and/or open interest of an asset or contract. Technical analysts utilize indicators to forecast future price changes by examining historical data. The Relative Strength Index (RSI), Money Flow Index (MFI), stochastics, moving average convergence divergence (MACD), and Bollinger Bands are a few examples of popular technical indicators

Zig Zag Indicator

The zig zag indicator is a simple tool used by analysts to determine whether a security's trend is changing. By identifying support and resistance levels, it is possible to recognize major price movements while filtering out short-term variations, thus removing the noise of daily market conditions. It is a great tool for any trader that uses swing highs and swing lows as indicators.

Annualized

The term annualized refers to a process by which data from periods of less than a year are extended to 12-month periods. Learn to Recognize Annualization Numbers with terms of less than a year are annualized often for convenience. The impacts of compounding on the yield under consideration will also be taken into account by the annualization process. To evaluate the economic value of a commodity, security, or business, annualizing is a useful tool. When a figure is annualized, it is extrapolated to the following twelve months based on its performance over the past few months. Some typical applications of annualizing are provided below. Results in Business Similar to how a company's financial performance can be predicted from its present financial data, or run rate, an annualized return can be calculated and used to analyze the company's future performance. The run rate is an extrapolation of the present financial performance based on the assumption that the current conditions w

Shareholder Activist

A shareholder activist is someone who works to influence change inside or for a publicly traded company by using their shareholder rights.

Market Price

The price at which a good or service can currently be purchased or sold. The forces of supply and demand decide how much an asset or service will cost on the market. The market price is the cost at which the quantity supplied and the amount demanded are equal. Consumer and economic surplus are determined using the market price. Customer surplus is the difference between the highest price a consumer is willing to pay and the actual amount they pay for the product: the actual market price. Producer surplus, commonly known as profit, is the sum from which producers profit from their sales at the market.

Yield Curve

Return on capital, expressed as a percentage annually. A company's dividend or interest paid stated as a percentage of its current price. Yield is a term used to describe the profits made and realized on an investment over a specific time frame. It is represented as a percentage based on the amount invested, the security's current market value, or its face value. Yield is made up of the interest or dividends that come with holding a specific security. Yields can be categorized as known or anticipated depending on the security's valuation (fixed vs. variable).

Holdings

Holdings are the contents of an investment portfolio held by an individual or an organization, such as a mutual fund or a pension fund. A variety of financial instruments, such as stocks, bonds, mutual funds, options, futures, and exchange-traded funds, may be included in a portfolio's holdings (ETFs).

Paper Trade

Paper trades are simulated trades that let aspiring investors and traders practice buying and selling without putting their own money at risk. The expression stems back to a time when ambitious traders would train on paper before putting their money at risk in real markets (before the ubiquity of online trading platforms). While learning, it is recommended to a journal. Therefore a paper trader manually logs every transaction to Toto keep track of simulated trading positions, portfolios, gains and/or losses. The majority of practice trading nowadays includes the use of a simulator that looks and feels just like a real trading platform.

Alternative Minimum Tax (AMT)

Alternative Minimum Tax (AMT) refers to the the Tax Reform Act of 1986 that overhauled federal tax with the goal of requiring high-income people, trusts, estates, and companies to pay at least some taxes. AMT Calculation Tax breaks enjoyed under the standard framework are rendered null and void by the AMT. To calculate their Alternative Minimum Taxable Income, taxpayers must add back in certain deductions (AMTI). Next, the AMT provides an exemption from taxation of $72,900 for single filers and $113,400 for joint filers (for tax year 2020). When adjusted gross income (AGI) reaches $518,400 in 2020 for single filers and $1,036,800 in 2020 for married filers filing jointly, exemptions begin to phase out at a rate of 25 cents per dollar. After adjusted gross income (AMTI) is calculated and the exemption is subtracted, the tax rate for taxpayers (single and married filing status) is 26% on AMTI up to $197,900 and 28% on AMTI above $197,700. (tax brackets for tax year 2020). Taxpayers deter

Options on Futures

A futures contract option gives the holder the option to purchase or sell a particular futures contract at a striking price on or before the option's expiration date, but not the obligation to do so. These operate similarly to stock options but differ in that a futures contract serves as the underlying security instead of a stock.

Upside/Downside Ratio

The upside/downside ratio is a market breadth indicator that depicts the relationship between the volume of advancing and declining stocks on a stock exchange. This indicator is commonly used by investors to determine the market's momentum at any particular period. The upside/downside ratio is a variation of the advance-decline ratio (ADR), which analyzes the number, rather than the volume, of stocks that closed higher to the number of stocks that closed lower than their previous day's closing prices.

Out of the Money (OTM)

An option contract that only has extrinsic value is referred to as being "out of the money" (OTM). The delta value of OTM options will be lesser than 0.50. The strike price of an OTM call option will be more than the market value of the underlying asset. An OTM put option, on the other hand, has a strike price that is less than the underlying asset's current market value.

Initial Coin Offering (ICO)

Initial coin offerings (ICO) is a financial strategy that a business might utilized to sell a brand-new cryptocurrency as part of a plan to acquire capital. Cryptocurrency is given to investors in return for their financial investments. Initial coin offerings (ICOs) are analogous to initial public offerings (IPOs) in the stock market space.