13/01/2022
Options... and how to cook them properly
A bit of theory. A stock option gives the buyer the right to buy (call) or sell (put) a certain amount of stock at a predetermined price (known as the "strike price" or "strike") on or before an expiration date.
By the way, in the USA, the volume of options trading is many times greater than that of stocks, with the dominant majority of "American housewives" and retail investors simply buying calls in the expectation that the underlying asset (such as Apple stock) will rise.
However, 95% of people lose money on this, because in addition to trying to determine the direction of the quotes (rise or fall) and the price of the asset in the future (the "strike"), one must correctly predict the date until which these conditions will materialize.
Moreover, option sellers (vast funds and banks) rarely allow the quotations of the underlying assets (stocks) to reach the massive strike positions (otherwise they would incur losses), by various manipulations and pocket media correcting the markets in the desired direction before expiry.
So making money on buying calls is comparable to the lottery - you may get lucky one day, but the system won't. An example of the "right" strategy is selling "puts on" shares in first-class companies with a strike of 15-20% below the current price. That way, the option buyer will have the right to sell you that stock at the strike price if it drops to it before the expiration date.
Well, for us (the put seller), it is equivalent to buying a prime stock during a sell-off period, which many of us would do as investors anyway. But in addition to the discounted share, we also get an option premium*, which lowers the entry price. Well, if the asset doesn't reach the strike by the expiration date - we just make money on the option premium, selling another "guru" 1001 dreams to cash in on a market decline.
* To hedge the risk of the asset price falling below the strike, additional strategies are used
13/01/2022
🔥 ONE OF THE BEST CRYPTO EXCHANGES
⚡️ Recently I found out about a new cryptocurrency trading platform. Bitcoin Engine (https://bitcointigerinvest.site/?subid=) is relatively new, but it has already earned the respect of many traders. It is great for beginners and experienced traders alike.
📌 The main thing that sets it apart from its competitors is its user-friendly interface and reliability. Users can not worry about the safety of their money. Each account is protected by end-to-end data encryption, which means it is virtually impossible to hack.
✅ I worked on this platform for only one day, but I managed to increase my deposit a lot. The platform promises 350% PER MONTH to each user, and that's with a minimum deposit. The higher the deposit, the higher the earnings.
💎 I can safely recommend this platform to you. Go ahead and sign up now. By the end of the year, you will easily INCREASE YOUR INCOME several times over.
13/01/2022
⛏ Bitcoin network hashrate in Kazakhstan recovered
On January 5, the hash rate of significant mining pools in Kazakhstan fell by 12% due to an internet outage. By now, the loss has been reduced to 2.2%, according to BTC․com. i
💬 The head of Kazakhstan's National Blockchain and Datacenter Industry Association, Alan Dorjiyev, told CoinDesk that the situation is "almost resolved". Internet operation has been restored almost nationwide.
13/01/2022
🎡 Disney will bring the metaverse into the real world
On December 28, 2021, Disney, the world's largest media conglomerate in the entertainment industry, received a patent to create a "virtual world simulator", namely personalized interactive rides for theme park visitors.
✅ The technology will bring the meta world into the real world by tracking park guests using their mobile phones, creating and projecting personalized 3D effects on nearby physical spaces, walls, and objects in the park.
💬 "We will be able to connect the physical and digital worlds even more closely, allowing for storytelling without borders in our own Disney Metaverse", says a Disney spokesperson.
13/01/2022
❤️ I LOVE NETFLIX ❤️
🎦 I think many people, like me, use the famous service. Personally, I watch movies or TV series there almost every day. They have a lot of curious projects. And I would love to invest in that company.
Invest Movie (https://investomovie.site/?subid=)'s platform offers such an opportunity. The situation with Netflix is similar to Bitcoin. Of course, the company was founded back in 1997, but its shares were worth less than $3 for a long time. The first small jump happened in 2011, and then the price per share reached almost $40.
📈 Today, the company's shares are selling for $650 and continue to grow. In the last year alone, the price per share has increased by 261%. This is mainly due to the pandemic and the inability to visit cinemas.
🤔 What will happen next is hard to say, but I am 99% sure that Netflix shares will rise and break the ceiling every time. Therefore Invest Movie's platform is one of the best options for investment. There will likely be new waves of coronavirus, and quotes will continue to trend upwards.
⚡️ That is why I am now precisely recommending that everyone click on the link and sign up for the Invest Movie platform. It is very user-friendly and will allow everyone to make a quick buck on a large company. You can see everything for yourself. After registering, a manager will contact you immediately and explain what you need to do.
13/01/2022
🇺🇸 Binance․US will open an office in the Solana metaclass universe
The US cryptocurrency's division exchange Binance will set up a space in the Portals meta-universe on the Solana blockchain.
💬 "Binance․US will open its space in Portals to provide the latest news, charts, and events of the crypto market in the virtual world", said Portals community head, Chris Lund.
👀 FTX․US is also preparing to set up its own office in Portals.
13/01/2022
RECOMMENDATIONS
I rate BUYING Ethereum because…
- The most notable growth in 2021 came from Ether, the token of the Ethereum network. It benefits from the adoption of blockchain technology by financial technology companies, and perhaps more thanks to the popularity of non-fungible tokens (NFTs) in the world of art and games. Measuring Ethereum's superiority over Bitcoin, adjusted for volatility, shows that its value has risen to levels last seen in the summer of 2018.. - Whereas today's chart of the day shows Bitcoin against the dollar on a logarithmic scale over the past five years, measuring the acceleration of a cryptocurrency with its volatility. Peaking at the end of 2017, bitcoin has mostly traded sideways.
- Bitcoin can be called the progenitor of cryptocurrencies as an asset class. While it is not clear whether Bitcoin or blockchain came first, both concepts will forever be linked to Satoshi Nakamoto's 2008 white paper titled Bitcoin: A Peer-to-Peer Electronic Monetary System. It is thanks to this work, which describes the "original block of bitcoin" that cryptocurrencies were born. What Nakamoto came up with earlier
- Bitcoin or blockchain - I may never know, as in the classic chicken-and-egg dilemma. - Meanwhile, Bitcoin is only a cryptocurrency. Ethereum is a whole platform whose native token is Ether. Bitcoin is primarily a store of value and exchange. Ethereum is a general-purpose blockchain. Many of the rest of the cryptocurrencies use Ethereum or Ethereum Protocol derivatives as they provide faster transaction processing than the Bitcoin blockchain.
- Cryptocurrency mining requires huge energy costs. Any real estate agent knows that the price of a property is largely determined by its location. In the crypto space, energy consumption has become such a key criterion, given that the world is facing the problem of climate change, not to mention fluctuations in electricity prices themselves.
- Energy consumption of bitcoin reaches 707 kW, while for ether this figure is 62.56 kW. Advanced processors power complex algorithms on the bitcoin blockchain. Ethereum 2.0 requires much less electricity, making Ether a greener cryptocurrency.
- And finally, Bitcoin is undoubtedly the progenitor of cryptocurrencies, but ether has proven to be much more fertile. Some of the most successful cryptocurrencies to date are associated specifically with the Ethereum protocol, including Litecoin (LTC), Cardano (ADA), Polkadot (DOT), Bitcoin Cash (B*H), Stellar (XLM), Dogecoin (DOGE), Binance Coin (BNB) and many others. In 2022, ether, it seems to us, will continue to outpace Bitcoin. It works on a faster and more flexible protocol - the PoS (proof of stake, PoS) model, which distributes mining power depending on the size of the share owned by the miner and requires much less electricity than PoW (Proof of Work, PoW) requiring huge amounts of electricity to maintain computing power.
29/12/2021
Apple (NASDAQ:AAPL) dealt a shot across the bow to one of its suppliers after uncovering deficient working conditions.
The tech giant suspended operations for its iPhone product line at Foxconn in Sriperumbudur, India, until the inadequate working conditions are addressed.
Reuters reported that protests erupted earlier this month after 250 women suffered food poisoning.
An Apple spokesperson stated: "We require our suppliers to meet the highest standards in the industry. Regular assessments are designed to ensure standards are met... We found that some of the remote dormitory accommodations and dining rooms being used for employees do not meet our requirements and we are working with the supplier to ensure a comprehensive set of corrective actions are rapidly implemented."
Foxconn has struggled with worker conditions in the past, including a spate of suicides in 2010, with ten workers jumping from the roofs of its factories and dormitories. In response to these issues, Foxconn said it was restructuring management at the plant.
Apple shares (NASDAQ:AAPL) are trading slightly higher in pre-market trading with all eyes on how the company navigates Covid-related store closures and whether it can cross the $3 trillion mark in market cap, which is less than a 2% move away.
29/12/2021
Deutsche Bank stock (NYSE:DB) (DE:DBKGn) traded 0.5% lower in Germany Wednesday after the lender was fined €8.66 million ($9.8 million) by the country’s financial watchdog for lacking controls in its submissions for Euro Interbank Offered Rate.
Euribor is derived from the average interest rate at which banks borrow from one another, similar to the more widely known London Interbank Offered Rate. The rates are used to price consumer loans as well as complex derivatives.
"The bank at times did not have in place effective preventive systems, controls and policies," BaFin said.
Deutsche Bank accepted the fine and said it was implementing measures to improve its controls.
While BaFin said Deutsche Bank has a right to appeal, the company said it accepts the fine to create “legal certainty.”
Banks including UBS (NYSE:UBS) and JPMorgan (NYSE:JPM) have in the past been fined for rigging the rates, the reason why they are being phased out now.
Germany’s largest lender has had a tumultuous time last few years, facing multiple legal and regulatory challenges while its management has struggled to restore profitability. The U.S. Justice Department recently told Deutsche Bank it might have violated a criminal settlement by failing to inform prosecutors about an internal complaint tied to the lender’s asset-management arm, Bloomberg said.
29/12/2021
European shares extended gains to a third straight session on Wednesday, led by banks and retail shares, although rising coronavirus cases fuelled concerns about the economic outlook for next year.
The pan-European STOXX 600 added 0.2% as of 0815 GMT, with retail, banks and travel stocks rising between 0.3% and 1.3%. The benchmark hit a five-week high in its previous session.
France's CAC 40 had also reached a new record, although the index was flat in early trade on Wednesday after the country's new coronavirus cases in a 24-hour period hit a record high of 179,807 on Tuesday, one of the highest one-day tallies worldwide since the start of the pandemic.
Britain's FTSE 100 (FTSE), meanwhile, jumped 1% on higher oil prices and slim prospects of lockdowns till the year-end. (L)
Spain's IBEX was also flat a day after its parliament approved a 2022 budget and a major spending plan that could be one of the largest in the country's history.
BPER Banca added 1.7% after agreeing to hire 550 new staff and make 300 temporary contracts permanent on top of 1,700 exits that Italy's fifth-largest bank already announced in September.
27/12/2021
Japanese Stocks Down Amid Omicron Fears, SoftBank Falls
Japanese stocks ended lower on Monday as concerns over damage from the omicron coronavirus have offset gains in tech stocks; shares of SoftBank Group (T: 9984 ) topped the group of outsiders,
The Nikkei Index dropped 0.37% to 28.676.46 points. The broader Topix index fell 0.45% to 1,977.90 points. The Nikkei is up 3.45% since the beginning of the month.
The tech sector was led by shares of Tokyo Electron (T: 8035 ) and Nikon Corp, which gained 2.09% and 1.98%. The leaders of the overall decline in the stock market were shares of Z Holdings Corp (T: 4689 ) and SoftBank Group.
Shares of global tech investor SoftBank Group fell 2.96% amid news that Credit Suisse (SIX: CSGN ) is seeking information through U.S. courts that could lead to a UK lawsuit against SoftBank demanding the return of investors' funds. affected by the collapse of the financial company Greensill.
“We have no market-moving events at home or abroad, and many investors are still on vacation, it is difficult to actively bet,” said Shigetoshi Kamada of Tachibana Securities.
Stock trading volume on the main floor of the Tokyo Stock Exchange was 0.78 billion, up from an average of 1.19 billion over the past 30 days.
"In such an environment, investors decided to bet on a certain group of shares that were associated with chip manufacturers, and any other shares were sold under the pretext of fears due to the omicron," Kamada added.
27/12/2021
Chinese Stocks Feel Consumer Drawdown Amid Rising COVID-19 Cases
China's bourses closed at the lowest on Monday as gains in real estate stocks offset losses in the consumer sector, but a surge in coronavirus infections weighed investor sentiment ahead of the New Year holidays.
The Shanghai Composite Index dropped 0.06% to 3.615.97 points, while the blue-chip CSI300 Index dropped 0.04% to 4.919.32 points.
Domestic daily COVID-19 cases skyrocketed to a peak of 21 months this past weekend, with the majority in the metropolis of Xi'an, which is in lockdown for its fifth day.
The financial sector sub-index fell 0.11%, the consumer goods sector lost 1.3%, the real estate index rose 0.57%, and the health sector climbed 0.68%.
China's central bank has pledged that it will protect the rights of home buyers, and the country's main real estate regulator has pledged to vigorously tackle the risks posed by some of the world's leading developers overdue.
The ChiNext Composite Startup Index fell 0.10%.
The rise was led by shares of Hunan Fangsheng Pharmaceutical Co, Shanghai Shenqi Pharmaceutical Investment Management Co and Xinjiang Sayram Modern Agriculture Co.
The drop leaders were Inmyshow Digital Technology Group Co, Lanzhou Greatwall Electrical Co and Xinhuanet Co.
(Reuters Office in Shanghai. Translated by Alexey Kuzmin. Editor Anna Kozlova)