Posts

Streaming War: Disney threatens Netflix's leadership

Image
After twelve years of undisputed and solo leadership in the streaming TV business, Netflix NFLX must get used this year a new and formidable rival: Disney Plus, the new kid in the neighborhood. At a more affordable price than its rival, with an intelligent alliance with Verizon to get the service for 12-month free and a massive 'Disney' campaign,  DIS reached 28 million subscribers in Disney+ just three months after launch it, above the expected 20-25 million prior to its recent earnings. In addition, its Q1 earnings show that its EPS $ 1.53 beats expected $ 1.44 and revenues topped estimates of $ 20.79 billion with $ 20.86 billion. Great.

Taken by kind permission to IAM Newswire, a great source of articles for the investor and stock trader with its easy and well-written style that readers love, let's review some fundamentals of these titans of the industry, and a third, ROKU, crouched, waiting for its opportunity. Finally, this post is complete with a brief technical ana…

Trader Notes: Tips for Trading Options

Image
As you know, the US main brokers (Ameritrade, Fidelity, Charles Schwab, eTrade) are now offering zero-commission in stocks, ETFs and options trading. A piece of great news, by far the best this year for retail traders.  It's a great opportunity to start trading options more aggressively, creating an options-based portfolio as now commissions are no longer cutting our profits.


1. Options as a substitute for Stocks: Delta > 0.80
Substituting stocks with options has two unique advantages: only options bring leverage and protection.

- Options provide tremendous financial leverage to users when they are used in a conservative way: you can control the same amount of shares with less money, and mainly, the % returns are much higher when you trade with options. This carries another advantage: with more money available you can diversify better your portfolio.

- And provide protection: with the appropriate strategy, in case of devastating fall of the stock, your maximum loss is always l…

Designing a Winner Portfolio for 2020

Image
The year 2020 begins and investors and traders are designing the best asset allocation for their portfolios. And they ask ourselves the usual questions: how will this year comes and what surprises will it bring? What will be the performance of the global economy, today in deceleration with central banks resorting to declines in i-rate and debt issuance? Will the anticipated recession, due to inversion of the yield curve since 2018, finally will occur or seems the US its avoiding it? Will its manufacturing indices fall further and will consumption continue to be the mainstay of its economy? Will the impressive growth of the US exchanges continue or the correction finally come after 10 years of an incredible bullish rally? Will there really be a "Phase 2" in the Trade War? And the Brexit? Many questions and the experts are divided. Whatever the new year has in store, you've got options for investing in 2020 that promise a positive return.

This 2020 I will look for defensiv…

Stock Watchlist: January-February 2020

Image
Happy New Year, traders!
The 2019 trading year finished with a great performance for Wall Street, and also for some followers of this blog (thanks for the private messages!). Hopefully, the recommendations from the "Watchlist Update" posts and my daily tweets did it well. If you follow and trade them, good for you. It's your own responsibility.

For this 2020, I reduced to 15 the stocks of my Watchlist. I'm holding some stocks from my last Watchlist November-December, due to its good performance in these two months and an interesting forecast for next quarter:

- Disney DIS: my favorite stock for 2019 and a candidate to repeat this year.
- Fiserv FISV: now consolidating, ready for its next breakout.
- Kroger KR: we all need a defensive stock in our watchlist, and Kroger did well that "mission", rising when the market corrects. The recent alliance with Walgreens is another hit.
- Lennar LEN: its recent brilliant Q4 earnings report could send its shares up the…

A Decade in Charts

Image
The ten years period, from  2010 to 2019, finished and leave us many transcendental changes in different branches, like the economy, technology, work, home, or retail. Let's review those moments through the way we love: charts.
Many of the charts and texts are taken from Morning Brew's daily newspaper, definitely a great weapon for our Wall Street stock trading. Thanks, Brews!