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Showing posts from April, 2022

Iron Butterfly

An option transaction that employs four separate contracts as part of a plan to profit from movements in the price of stocks or futures that are contained within a predetermined range. In addition, the trade is set up to gain from a drop in implied volatility. Predicting the moment when option prices are anticipated to fall in value generally is the key to using this trade as part of a successful trading plan. This typically happens when there is a slight upward trend or sideways movement.

Reinvestment Option

A mutual fund's policy under which shareholders' dividends or capital gains distributions may be used to purchase new shares.

Pennant

A pennant is a type of consolidation pattern in technical analysis that develops after a security experiences a major movement, or the flagpole, followed by a sideways move in price action. During this consolidation period, two diagonal and converging trend lines can be drawn to form what looks like a pennant. At some point when price breaks out of the pennant consolidation, the expectation is that price will resume the movement in the same direction of the previous trend, prior to the consolidation period.

NUTX: No Idea What This Company Does. No Problem! +70% Gain In Just An Hour! 👍

Today we cover NUTX day trade. We had no idea what this company does, but it didn't matter. The intraday chart was bullish, volume was there. That what did matter. We day traded: +70% gain in just over an hour. Watch this video to get the technicals 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 n

Speculation

Speculation, often known as speculative trading, is the act of engaging in a financial transaction that carries a considerable risk of losing value but also carries the possibility of a sizable gain or other significant value. The risk of loss in speculating is more than compensated by the chance of making large gains.

Normal Yield Curve

A yield curve known as the normal yield curve is one in which short-term debt instruments yield less than long-term debt instruments of equivalent credit grade. As a result, the yield curve has an increasing slope. It's sometimes referred to as the positive yield curve and is the most prevalent yield curve form.

Net Cash

Value reported on a company's financial statements. Net cash is determined by deducting a company's total cash from its total liabilities. When analyzing a company's cash flows, the net cash figure is frequently utilized. Net cash is another term for the amount of cash that is still available after a transaction has been completed and all related fees and expenses have been deducted.

Ichimoku Cloud

The Ichimoku Cloud is a group of technical indicators that displays momentum and trend direction, as well as levels of support and resistance. This is achieved by taking several averages and charting them. Additionally, it computes a "cloud" using this data in an effort to predict potential future price levels of support and resistance.

Level 2

Level 2 is a subscription-based service that offers immediate access to the NASDAQ order book. Level 2 quotes, first established in 1983 as the Nasdaq Quotation Dissemination Service (NQDS), show traders and investors the depth and momentum of the market. The service offers price quotes from market makers authorized to trade every security listed on the NASDAQ and the OTC Bulletin Board. The ask prices and sizes are displayed on the right side of the Level 2 window, and the bid prices and sizes are displayed on the left. Level 2 quotes are very useful to active traders, especially scalpers and day traders.

Task Force on Climate-related Financial Disclosures (TCFD)

A framework for firms to improve and expand their reporting of climate-related financial data. The task force was created by the Financial Stability Board (FSB), an international organization established after the G20 London summit in 2009, that monitors and advises on the global financial system.

Realized Gain

A realized gain occurs when an asset is sold at a price greater than its initial purchase price. It occurs when an asset is sold for more than its book value cost.

Three Black Crows

A bearish reversal pattern made of three red (or black) consecutive long-bodied candlesticks indicating the end of an uptrend. These candlesticks should not have long shadows and should preferably open within the body of the preceding candle in the pattern. For reference, a candlestick is green (or white) when price closes above the opening price, indicating that equities are advancing; a candlestick is red (or black) when price closes below the opening price, indicating that equities are falling.

Sharpe Ratio

A risk-adjusted metric that assesses reward in relation to risk. Then metric is considered positive when the sharpe ratio is high.

Volume Analysis

The analysis of how many shares or contracts of a securities have been traded in a specific time frame. Technical analysts employ volume analysis as one of several aspects that influence their trading decisions. Investors can identify the significance of an asset's price fluctuations by monitoring its volume trends in combination with price changes.

Airline Stocks Are Flying High

Today we take a look at American Airlines (AAL) and Delta Air Lines (DAL) Airline stocks are extending their recent gains after the removal of mask mandates on air travel and public transportation, following ruling from federal judge in Florida. The ruling came as a positive news to the industry, along with falling gas prices, at least today, and positive traveling forecast for the upcoming summer season. Watch this video to get the technicals and what to expect moving forward. Good trading! Delta Air Lines (DAL) reported earnings last week The earning call was met with enthusiasm following CEO positive comments and a strong Q2 guidance, indicative of a rapid recovery in U.S. travel demand. Delta Air Lines received multiple upgrades including: Barclays upgraded to Overweight from Equal Weight and raised price target to $60 from $42 Morgan Stanley raised price target to $65 from $60 JPMorgan raised price target to $69 from $57 The JPMorgan analyst, Jamie Baker, also keeps an Over

Net Worth

The value of an individual's or business's assets less the value of the liabilities they have to pay. It is a crucial metric for evaluating the health of a business and offers a helpful overview of its present financial situation.

Exponential Moving Average (EMA)

Technical indicator that tracks an investment's price over time (such as the price of a stock or commodity). An example of a weighted moving average (WMA) is the exponential moving average (EMA), which lends more significance to recent price data. The EMA, like the simple moving average (SMA), is used to track price movements over time, and moving average ribbons make it easier to keep an eye on multiple EMAs at once.

Appreciation

The increase in an asset's value over time. The increase may be brought on by a variety of factors, such as a rise in demand, a decline in supply, increases in inflation or interest rates, or all of the above. Depreciation, which is a decline in value over time, is the opposite of appreciation. The Mechanisms of Appreciation The term "appreciation" can be used to describe the rise in value of any item, whether it be a stock, bond , currency, or piece of real estate. Capital appreciation, for instance, is the rise in the value of a financial asset like a stock due to factors like the company's improved financial performance. Having an asset appreciate in value is no guarantee that the owner will benefit monetarily from that rise. Realization of the rise occurs when the owner reports the asset's new, higher value on their financial statements. Appreciation of a currency is another form of appreciation. Over time, the value of one currency relative to another might

Short Interest

The quantity of shares that have been sold short and are still on the market is known as the short interest. If they believe the price will fall, traders would often borrow shares of stock and short sell an asset. Afterward, the investor sells these borrowed shares to buyers who are prepared to pay the going rate. Short interest frequently serves as a gauge of market sentiment. When short interest rises, it frequently indicates that investors have become more negative, while a decline in short interest indicates the opposite.

Initial Public Offering (IPO)

When shares of a private company are initially made available to the public as part of a new stock issuance, it's known as an initial public offering (IPO). A corporation can raise equity funding from the general public through an IPO. Since current private investors often receive a share premium during the transition from a private to a public business, this might be a crucial period for private investors to completely realize gains from their investment. Additionally, it enables public investors to take part in the sale.

Straddle

A straddle is a neutral options strategy that entails purchasing a put option and a call option with the same strike price and expiration date for the underlying investment. A trader will profit from a long straddle when the price of the asset rises or falls by more than the total cost of the premium paid from the strike price. As long as the price of the underlying asset fluctuates drastically, the profit potential is practically limitless. In contrast to a strangle, which employs a call and put with separate strike prices, a straddle uses options with the same strike price.

Two Discount Stores To Trade During These Times of High Inflation

Today we analyze two discount stores: Target (TGT) and Walmart (WMT). Their charts are showing bullish patterns and they both look ready to break out. Watch this video to get the technicals 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, option

Kal's Option Trade of the Week - UNG Short Call Vertical

This week we are going in with the Short Call Vertical strategy on UNG (Natural Gas ETF). The reason for choosing this option trade is that the Natural Gas market has been volatile and on a tear for the last few weeks. As contrarians, we will bet it slows down and turns around from here. Purely my assumption, but you can only trade on your own assumptions. :) 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 own suitability to trade. Trading results can neve

Par Value

A bond's par value is the initial purchase price plus the amount that will be repaid when it matures. Normally, bonds are sold in multiples of $1,000.

Liquidity

The opportunity to quickly access money that has been invested. For example, because shares in mutual funds can be redeemed for current value on any business day, which may be greater or lower than the original cost, these investments are considered liquid.

Market Index

A market index is a notional group of investment holdings that symbolizes a certain area of the financial market. The prices of the underlying holdings are used to calculate the index value. Some indices are valued according to market capitalization, revenue, float, and fundamental weighting. Weighting is a technique utilized for modifying the relative importance of each item in an index.

Heikin-Ashi Charts

Heikin-Ashi charts are an offshoot of traditional candlestick charts created by Munehisa Homma in the 1700s. The Heikin-Ashi approach makes use of a modified pattern formation based on two-period averages rather than the open, high, low, and close used in traditional candlestick charts. The resulting Heikin-Ashi candlestick pattern attempts to better depict the trend by reducing some noise. This smooth out appearance of the chart makes it simpler to discern trends and reversals. However it also hides gaps and certain important price data.

Annual Percentage Rate (APR)

Annual percentage rate (APR) is a percentage that expresses the actual annual cost of borrowing money throughout the course of a loan or the revenue from an investment. This does not account for compounding and includes any fees or additional expenditures related to the transaction. The APR gives customers a numerical value they can use to compare lenders, credit cards, or investment goods. The APR is a measure of the overall cost of borrowing money over the course of a year. Finding the finest loan terms and interest rates for your needs requires looking at the market from multiple perspectives. The term "annual percentage yield" (APY) is synonymous with "annual percentage rate" (APR), although in this case it describes the return on an investment or savings account rather than the cost of borrowing money. While looking into various lending options, such as a credit card, mortgage, auto loan, or personal loan, you may have come across the term annual percentage rat

Joint Venture (JV)

A joint venture (JV) is an agreement between two or more parties to combine their resources in order to carry out a certain objective, such as a new project or any other type of commercial activity. Each partner in a JV is accountable for the venture's gains, losses, and expenses. The venture, however, exists independently of the participants' other commercial ventures.

Inflation

A decrease of purchasing power, frequently associated with an increase in the cost of goods and services.

New Homes Sales

New home sales, commonly referred to as "new residential sales," is an economic indicator that tracks sales of recently constructed homes and is released each month by the U.S. Census Bureau.

Federal Funds Rate (Fed Funds Rate)

The interest rate that banks with excess reserves charge banks that require overnight loans to meet reserve requirements at a Federal Reserve district bank. Since it is determined daily by the market, as opposed to the prime rate and discount rate, which are periodically adjusted by banks and the Federal Reserve Board, it is the most sensitive indication of the direction of interest rates.

Trading Strategy

A trading strategy is a methodical approach used to buy and sell securities in the markets. A trading strategy is built upon predetermined guidelines and standards that are applied when making trading selections.

Options Contract

An options contract is an arrangement between two parties to enable a potential transaction on an underlying security at a predetermined price, known as the striking price, before or on the expiration date.

Sustainable Investing

An investment strategy that is focused on the future, seeking to produce long-term, sustainable financial return in a rapidly evolving global environment. It comprises a wide range of methodologies, the heart of which begins with the absorption of environmental, social and governance (ESG) data.

Stock

Also known as equity, the term stock refers to a long-term, growth-oriented investment that represents ownership in a corporation.

Securities

A financial instrument, like bonds and stocks, that is fungible and negotiable and has some sort of monetary worth. The term securities refers to the legal records that attest to an investor's ownership of specific stocks or bonds. A security can reflect rights to ownership as an option, a creditor relationship with a government agency or corporation as stock, or ownership of that entity's bond.

Green Bonds

A particular class of fixed-income instrument created for the express purpose of raising funds for projects that protect the environment and the climate.

One-Cancels-the-Other Order (OCO)

A one-cancels-the-other (OCO) order consists of two conditional orders that state that if one of them is executed, the other one will be immediately canceled. An OCO order on an automated trading platform sometimes combines a stop order and a limit order. The other order is automatically canceled when the stop or limit price is reached and the order is executed. OCO orders are used by more experienced traders to limit the risk after entering a trade.

Short Covering

In order to close off an open short position at a profit or loss, a practice known as short covering entails purchasing back borrowed securities. The same security that was first sold short must be bought, and the shares that were borrowed for the short sale must be returned. Buy to cover transactions fall under this category.

Valuation

A company's estimated worth or value; also the value investors give to a particular stock of company share. The analytical process of determining the current (or future) worth of an asset or a company. There are numerous methods for performing an evaluation. When determining a company's value, an analyst considers a variety of factors, including the management of the company, the makeup of its capital structure, the likelihood of future earnings, and the market value of its assets.

3 Companies Worth Investing In: Tesla, Twitter, Pinterest. Ask Elon

Today we focus on three companies: Pinterest (PINS), Tesla (TSLA) and Twitter (TWTR). Twitter and Tesla were both in the news today, as Elon Musk revealed a 9.2% stake in Twitter, sending the stock to the moon. In addition, Tesla Q1 reported deliveries of 310,000 units. The number was below the consensus of 313,000, but still better-than-feared following supply chain issues. Pinterest did not report any significant news today, nevertheless price made a positive move in sympathy to the Twitter run. These three companies are poised to extend their gains in the coming weeks and months. At least two of them, if not all three, are also potential good investments for the future. Elon Musk seems to agree. Watch this video to get the technicals 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 acc

Value Averaging (VA)

Value averaging (VA) is an investing method that, like dollar-cost averaging (DCA), makes consistent monthly contributions but differs in how the amount of each monthly contribution is calculated. In value averaging, the investor sets a monthly target growth rate or contribution amount for their asset base or portfolio and then modifies it each month based on the relative gain or loss on the initial asset base.

Momentum Investing

A method known as momentum investing looks to profit from the continuation of an existing market trend. Investors use this trading method to purchase stocks that are already rising and try to sell them when they appear to have reached their highs and are in extremely overbought conditions. In the world of markets, momentum is the ability of a price trend to continue for expended periods of time, with little to no pullback. Every small pullback in an opportunity for the bulls to take the price even higher.