Trade Findings and Adjustments 4-14-2020
Topics:
Charts/positions
What makes this a “V” recovery?
- Continuing to plateau on covid19 cases
- Vaccine? A year out before we get a final vaccine
- Economy coming back online
- Less than awful earnings season
What makes this a “W” recovery?
- Cases not truly plateauing
- Restarting economy keeps getting delayed
- Earnings season
- Maybe even 3rd and 4th quarter earnings will be more important to investors as we see how companies weather the current storm
Spread trading?
- How have yours done?
- Calendar trades gone well
- Naked short puts (far out of the money)
Leaps are your best friend. Leap long calls (Call Option contracts that go out a year or more to expiration). Think of it as stock replacement.
Headline trading?
BA?!?! WHY?
- New cancelations of 737 max making total cancelations around 300!!
- Why are we investing in stocks in the first place?
- 300ish cancelations out of how many orders? Answer: 4000
- Not significant especially from no name airlines that are going bankrupt
What makes a smart investor?
- One who does their homework on the COMPANY and knows how to properly weigh the news with actual fundamental numbers.
Keve Bybee
