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Showing posts from July, 2022

Kal's Option Trade of the Week - TLT Iron Condor

This week we are getting into the Bond business. All we've heard lately is about Bonds, Bonds, Bonds. So why not make a little trade in the bond arena and see if we can generate some of our own cash. :) 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 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 s

Contingent Deferred Sales Charge (CDSC)

Fee, sales charge, or load mutual fund investors must pay when selling Class-B fund shares within a certain number of years after the initial purchase date. This charge is also referred to as a "sales charge" or a "back-end load." Class-B shares in mutual funds that have share classes that determine when investors pay the load or sales charge have a contingent deferred sales charge applied to them for a holding period of five to ten years starting from the time of the original investment. A CDSC is typically expressed in the financial sector as a percentage of the dollar amount invested in a mutual fund. A CDSC may also be referred to as an exit fee or a redemption charge in the financial sector.

Forward Contract

A tailored agreement between two parties to purchase or sell an item at a predetermined price at a later date. Although its non-standardized nature makes it particularly suitable for hedging, a forward contract can be utilized for speculating or hedging.

Non-GAAP Earnings

Non-GAAP earnings are an alternative accounting metric used to assess a company's profitability. Many companies disclose non-GAAP results in addition to GAAP earnings (GAAP). These pro forma data, which don't account for one-time transactions, might occasionally offer a better indicator of a business's financial health based on its core operations.

Yield Spread

A yield spread is the difference in yields on several financial instruments with different maturities, credit ratings, issuers, or risk levels. It is computed by subtracting the yield of one instrument from the yield of the other. This distinction is commonly stated in basis points (bps) or percentage points.

Market Order

A market order is an instruction by an investor to a broker to buy or sell stock shares, bonds, or other assets at the best available price in the current financial market.

Crypto Market Update: Ready for the Ethereum Rally (July 2022)?

Today we take a look at the technicals for Bitcoin and Ethereum. The crypto market, just like the stock market, has had some tough times over the past 6-8 months.  Recently Bitcoin dropped as low as $17,568, falling from an all-time-high at $69,000 back in November 2022. Ethereum did something similar, dropping from almost $5,000 to as a low $879 during the same period. After hitting rock bottom, the months of June and July have started to provided some stability to the crypto market.  In the last two weeks, both crypto currencies have started a recovery effort, with Ethereum leading the rally. Is this a bounce, before the bears take price down again? Or did the crypto market hit a bottom and it's now ready to move up? 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

Ask

The ask, also known as the offer price, is the price a seller is prepared to take for a security. The quantity of the security that may be offered at the given price is also indicated in the ask quote along with the price. The ask will always be higher than the bid since the bid is the price a buyer is willing to pay for a security. Meaning of Ask When trading and investing, stocks, bonds , foreign currency, or derivatives, hearing the terms "bid" and "ask" is extremely common. For instance, if a buyer offered to sell 100 shares for $15.70 each, that would be a "ask" in the stock market. It is common knowledge that the ask is always greater than the bid, and that the spread between the two equals the difference between the two prices. A bigger spread makes it tougher to profit because the security is continually bought high and sold low. Investments Grow In the past stock prices were previously quoted to the nearest sixteenth. In 2001, that changed and i

Quarter

A quarter is a three-month period on a business's financial calendar that serves as the foundation for regular financial reporting and dividend payments. A quarter, which stands for one-fourth of a year, is commonly referred to as Q1 for the first quarter, Q2 for the second quarter, Q3 for the third quarter and Q4 for the fourth and last quarter of the year. A quarter is frequently represented by the year in which it belongs, such as Q1 2022 or Q122, which stands for the first quarter of the year 2022.

Sustainability Bonds

A bond instrument whose proceeds will only be used to fund or refinance projects that integrate social and environmental issues.

Cash Equivalent

A short-term money market instrument with high liquidity and safety that can be quickly turned into cash, such as a Treasury bill or repurchase agreement. Generally cash equivalents are investment instruments with good credit quality and high liquidity that are designed for short-term investing. Along with stocks and bonds, cash equivalents, usually referred to as "cash and equivalents," is one of the three major asset classes in financial investing. The risk and return characteristics of these securities are minimal.

Santa in July. From $3 to $20 in five days. Watch today's action

Meet PGY. This unknown stock ran from $3 to $20 in five days. We day traded it three (3) times during the past five (5) trading sessions. 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, options, commodit

Mid-Cap Fund

A mid-cap fund is a collective investment vehicle (such as a mutual fund or ETF) that specifically invests in the equities of mid-cap companies, or those with market capitalizations between roughly $2 billion and $10 billion.

Average True Range (ATR)

Average true range (ATR) is a technical analysis indicator that evaluates market volatility by breaking down the whole range of an asset price for that period. It was first presented by market expert J. Welles Wilder Jr. in his book New Concepts in Technical Trading Systems. The largest of the current high less the current low, the absolute value of the current high less the previous close, and the absolute value of the current low less the previous close is considered to be the actual range indication. The ATR is then a moving average of the real ranges, often using a 14-day period. How Average True Range Works (ATR) As the range of each bar (or candlestick) increases, the ATR rises, indicating that market volatility is increasing. The strength of a price reversal would be indicated by a larger-than-usual increase in the ATR. Due to ATR's lack of direction, an increasing ATR may reflect either increasing selling or increasing purchasing pressure. Sharp price movements in any direc

Leveraged ETF

Leveraged exchange-traded funds (ETFs) are investment securities that boost an underlying index's returns using debt and financial derivatives. A leveraged ETF may aim for a 2:1 or 3:1 ratio, whereas a conventional exchange-traded fund normally tracks the assets in its underlying index on a one-to-one basis.

Investment Company

A corporation, trust or partnership that invests pooled shareholder dollars in securities appropriate to the organization's objective. Mutual funds, closed-end funds and unit investment trusts are the three types of investment companies.

NASDAQ (National Association of Securities Dealers Automated Quotations)

Nasdaq is a global electronic market place for buying and selling stocks. Nasdaq began as a division of the National Association of Securities Dealers (NASD), now known as the Financial Industry Regulatory Authority. Its name was originally an abbreviation for "National Association of Securities Dealers Automated Quotations" (FINRA). The Securities and Exchange Commission (SEC) pushed NASD to automate the market for securities not listed on an exchange, which led to the creation of Nasdaq. As a result, the first electronic trading system was created. NASDAQ is a computerized system that offers price quotations to brokers and dealers for numerous securities listed on the New York Stock Exchange as well as for securities traded over-the-counter.

Sector Analysis

A sector analysis evaluates the state of the economy, including its financial and economic standing, as well as its future prospects. An investor can make a forecast regarding the performance of the sector's companies using sector analysis. Sector analysis is often used by investors who specialize in a specific industry or who utilize a top-down or sector rotation approach to investing.

Ex-Dividend

A stock is referred to as being ex-dividend if it no longer carries the value of the upcoming dividend payment. The day the stock begins trading without the value of its upcoming dividend payment is known as the ex-dividend date or "ex-date." An investor who purchases a stock on or after the ex-dividend date will not be entitled to the declared dividend. Typically, the ex-dividend date for a stock is one business day before the record date. Instead, whoever owned the stock on the day before the ex-dividend date receives the dividend payout.

Nonfarm Payrolls

The number of workers in the United States, excluding farm workers and those in a few other employment groupings, is calculated using nonfarm payrolls. The Bureau of Labor Statistics (BLS) measures this by asking private and public organizations in the United States about their payrolls. Through its carefully watched "Employment Situation" report, which is released every month, the BLS provides the public with nonfarm payroll figures. The nonfarm payrolls statistics also excludes some government employees, residents of private homes, business owners, and employees of non-profit organizations in addition to farm workers.

Order-Send-Order (OSO/OTO)

The term "order-sends-order" (OSO), also known as "order-triggers-other" or "one-triggers-other" (OTO), refers to a group of conditional orders that state that if one order (the primary order) executes, the other orders will be automatically input (the secondary order or orders). OSO/OTO orders can take many different forms, such as take-profit plans and bracketed orders. OSO/OTO orders are used by seasoned traders to limit risk and lock in profits.

Investment Objective

The purpose of a mutual fund and its shareholders. Examples of investment objectives included growth, growth and income, income, and tax-free income solutions.

Letter of Intent (LOI)

A letter of intent (LOI) is a document that states a party's tentative intention to doing business with another. The main elements of a potential agreement are described in the letter. LOIs are frequently used in significant commercial transactions and have a structure akin to term sheets. However, one significant distinction between the two is that while term sheets take the form of a listicle, LOIs are delivered in letter styles. A shareholder may also write a letter of intent to say that they intend to make investments in a particular amount of money at a particular period. Frequently, the shareholder would be entitled to lower sales costs in exchange for signing a letter of intent. A letter of intent cannot be enforced because it is not a contract.

Individual Retirement Account (IRA)

Tax-advantaged savings accounts that can be used for long-term investing and saving. An IRA is intended to encourage people to save for retirement, much as a 401(k) account that an employee receives as a benefit from their employer. Anyone with earned income is eligible to open an IRA and benefit from the tax advantages that these accounts provide. However, unlike a 401(k), anyone can open an IRA without engaging their employer. Individuals can open an IRA That's why they name of individual retirement accounts. A bank, an investing firm, an internet brokerage, or a personal broker are all available options to individuals who want to open an IRA.

Stock Ticker

A stock symbol, also called ticker 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.

Return On Equity (ROE)

A financial performance indicator obtained by dividing net income by shareholders' equity. The return on equity (ROE) is known as the return on net assets since shareholders' equity is calculated as the sum of a company's assets less its debt.

FAANG

Acronym for the stocks of five well-known American technological companies: Meta (META), formerly known as Facebook, Apple (AAPL), Amazon (AMZN), Netflix (NFLX), and Alphabet (GOOG), Google's parent company. Jim Cramer, the anchor of CNBC's Mad Money, popularized the phrase FAANG in 2013 by praising these businesses for being "completely dominating in their sectors." Apple was added as the second "A" in the acronym to the original phrase "FANG" in 2017.

Loan Stock

Shares of common or preferred stock used as security to obtain a loan from another party. Like a typical loan, the loan has a fixed interest rate and can be secured or unsecured. Similar to an irredeemable convertible unsecured loan stock, a secured loan stock may also be referred to as a convertible loan stock if it can be converted into common shares directly under certain circumstances and at a predetermined conversion rate (ICULS).

Distribution

In finance, distribution can refer to a number of different things, most of which have to do with paying assets from a fund, account, or individual security to an investor or beneficiary. Distributions from retirement accounts are among the most frequent and become necessary when the account holder reaches a particular age. A firm or mutual fund paying stock, cash, or other rewards to its shareholders is referred to as making a distribution. Finally, distribution is one of the four market phases (accumulation, ascending, distribution, descending) involving smart money activity. When a specific equity or index has reached smart money price target and they are satisfied with it, they are now are looking to sell. The sellout period that is about to begin is called distribution phase. This phase develops towards the end of an uptrend that has been lasting for while.

Insider Trading

The act of someone trading in a public company's stock who has material, non-public information about that specific company. Depending on the time the insider makes the trade, insider trading may be either legal or not. When the relevant information is still private, insider trading is prohibited and is subject to severe penalties.

Rights of Accumulation

The ability to purchase anything over an extended period of time. For instance, an institutional investor would do this to avoid making a single, large acquisition that could increase the market price, or an individual investor might do this to lower risk via dollar cost averaging.

Proxy

A proxy is a representative who is legally permitted to act on behalf of another party or a voting method that enables a shareholder to cast a ballot even if they are not physically present at the meeting. Non-attending shareholders may vote their shares via proxy—having someone else cast votes on their behalf—or by mail if they are unable to attend the annual general meeting (AGM) of the corporation.

Russel 3000 Index

The FTSE Russell Russell 3000 Index is a market capitalization-weighted equity index that offers exposure to the entire U.S. stock market. The index monitors the performance of the top 3,000 U.S.-traded equities, which account for 97% of all equity securities issued by U.S. corporations.

Multi-Asset Class

A multi-asset class, often referred to as a multiple-asset class or multi-asset fund, is an investment that combines different asset classes (such as cash, stocks, or bonds). Multiple asset classes are combined in a multi-asset class investment to form a collection or portfolio of assets. Based on the individual investors' preference for weights and types, the asset class would vary.

Ethereum (ETH)

Ethereum is a decentralized blockchain platform that creates a peer-to-peer network for safely executing and validating smart contract application code. Participants can do business with one another using smart contracts without the need for a reliable central authority. Participants have complete ownership and visibility over transaction data since transaction records are immutable, verifiable, and securely distributed across the network. Ethereum accounts that users have created both send and receive transactions. The transactional token that makes use of the Ethereum network is called Ether (ETH), Ethereum's native cryptocurrency. Anyone can use Ethereum to develop any secure digital technology. There is a token built into it specifically for usage on the blockchain network, but users may also use it to pay for tasks done on the blockchain. Network users need to use Ether as payment in order to carry out their requested actions on the network.

Down Volume

Down volume increase occurs when a security's price drops on high trading volumes. This is a bearish scenario especially when confirmed by price breaking support and failing to recover.

Watch these two day trades come in. It will blow your mind

Today we cover two strong day trades: KSPN and PLRX. What?!? You've never heard of them? Me neither! That's the beauty of day trading . It doesn't matter what a company name is of what it does. What matter is early breakout pattern formations supported by solid volume activity. 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 fe

Exchange Ratio

Proportion number of new shares given to existing shareholders of a company that has been acquired or merged with another. Following the delivery of the old company shares, the exchange ratio is used to provide shareholders with the same relative value in new shares of the merged entity.

Line Chart

A line chart connects a number of data points with a continuous line to graphically depict the historical price movement of an asset. The line chart is the simplest type of chart used in finance. It only shows the closing prices of a security over time. Although line charts can be used for any timeframe, they are most frequently employed for daily price fluctuations.

NYSE Composite Index

The NYSE Composite Index tracks the performance of all common stocks listed on the New York Stock Exchange, including tracking stocks, Real Estate Investment Trusts, and American Depositary Receipts issued by overseas corporations. The free-float market capitalization of the index's component companies is used to compute the weights of those companies. Dividends are included in the total return that is used to compute the index.

Smart Money

The capital that is under the management of well-informed institutional investors, market experts, central banks, funds, and other financial institutions that are in-the-know. Smart money also refers to the combined power of large sums of money that has the ability to influence markets. For example, the central bank is the driving force behind smart money in this situation, and individual traders are riding on its back.

Hammer Candlestick

Candlestick pattern that develops when a security trades significantly lower than its opening, but rallies within the period to close near the opening price. This pattern forms a hammer-shaped candlestick, in which the lower shadow is at least twice the size of the real body. The body of the candlestick represents the difference between the open and closing prices, while the shadow shows the high and low prices for the period. When the hammer appears at the bottom of a downtrend or after a series of red candles, and possibly in oversold conditions, this indicates that a reversal is about to occur. In this case the hammer pattern is a bullish reversal. However, further bullish confirmation is required.

Overbought

When a security is thought to be trading above its inherent or fair value, it is said to be overbought. Overbought often refers to recent or short-term price movement in the security and expresses the belief that the market will soon correct the price. Technical analysis of the security's price history is frequently what leads to this assumption; however fundamental analysis can also be used and lead to this conclusion. An overbought stock can be a suitable candidate for selling.

10+ Stocks To Watch Moving Forward. Here Are the Technicals

Today we focus a several tickers including three swing trades that we initiated just a few days ago: ACCD, RBLX and TDOC. Create a watch list, watch this video to get the technicals, and manage your trades correctly. Featuring ACCD AGEN BBBY CHWY GROV LABU LCID LI MRNA MVIS PINS RAD RBLX RIVN SPCE TDOC 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 age

Kal's Option Trade of the Week - SPY Iron Condor

This week we are going in with the Iron Condor strategy on SPY (S&P 500). In this instance, I am looking at the major indices since the entire stock market is volatile. With the market as volatile as it is, I am staying away from individual stocks this week again and going into an index instead. 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 never be guaranteed. SharperTrades, LLC is not registered as an inve

Treasury Yield

Treasury yield is the effective yearly interest rate, stated as a percentage, that the US government pays on a certain debt obligation. In other words, Treasury yield is the annual return investors can anticipate from holding a U.S. government securities with a specific maturity.

Ratio Analysis

Ratio analysis is a mathematical technique for getting insight into a company's liquidity, operational performance, and profitability by evaluating its financial documents such as the balance sheet and income statement. Ratio analysis is the foundation of fundamental equity analysis.

Underperform

An investment that is not keeping up with other securities. In a bull market, for example, a stock is underperforming if its gains are less than or equal to those of the S&P 500 Index. In a bear market a stock is underperforming if it declines more quickly than the overall market. Underperform is also a type of analyst rating which is given when shares of a company are anticipated to perform marginally worse than the market return. The label is also referred to as weak hold or moderate sale in the market.

Short Squeeze

A short squeeze is an unusual condition that triggers rapidly rising prices in a stock or other tradable security. For a short squeeze to occur, the security must have an unusual degree of short sellers holding positions in it. The short squeeze begins when the price jumps higher unexpectedly. The condition plays out as a significant measure of the short sellers coincidentally decide to cut losses and exit their positions.

Triple Top

A triple top is a bearish technical pattern that consists of three near-identical highs followed by a breakdown below the support area. Typically a triple top is used in technical analysis to predict the reversal in the movement of an asset's price, in this case bearish. However, in addition to price holding below the breakdown area, increased volume activity is also needed to validate that a bearish reversal is, in fact, happening.