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Trading Ideas

What Are Earnings Strangles?

February 19, 2021 admin Comments Off on What Are Earnings Strangles?

Day trading is a constant struggle to maximize gains and minimize losses. This results in maneuvers like earnings strangles. An earnings strangle is an attempt to capitalize on a company’s upcoming earnings report with a strategy that will profit from the stock’s expected movement—whether up or down.
The maneuver consists of setting both calls and puts on the same company with the same expiration date—usually the day or two after the earnings report. The strangle comes from the different prices of the puts and calls. An “out-of-the-money” call paired with an “out-of-the-money” put caps unrealized losses and lays down a …read more […]

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Greenshoe Option in The IPO Process

February 19, 2021 admin Comments Off on Greenshoe Option in The IPO Process

The greenshoe option allows underwriters to buy extra shares from a company that goes public. It is an over-allotment clause in the underwriting agreement of an initial public offering (IPO). It’s used to support the share price of a company following the IPO process.
A greenshoe option often allows underwriters to buy up to 15% more of a company’s shares than initially offered. Over-allotting shares helps stabilize the price when public demand is higher or lower than expected.

How Does the Greenshoe Option Work?
A greenshoe option helps to reduce volatility in the market caused by supply-and-demand inconsistencies. An underwriter can short sell …read more […]

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The First Crypto ETF Has Hit the Market. But Will the U.S. See One?

February 19, 2021 admin Comments Off on The First Crypto ETF Has Hit the Market. But Will the U.S. See One?

The U.S. doesn’t have a Crypto ETF yet. But the first North American Crypto ETF has debuted on the Toronto Stock Exchange (TSX). It’s another sign that crypto is rapidly moving towards the mainstream.

In its first hour of existence, TSX’s Purpose Bitcoin ETF saw more than $80 million in volume… Proving that not only is there acceptance for such an investment vehicle, there’s a whole lot of demand too.
In a press release leading up to the new ETF, Purpose Investments CEO Som Seif said,
“We believe Bitcoin, as the first and largest asset in the emerging cryptocurrency ecosystem, is poised to …read more […]

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Will Axiom Space IPO? Why Investors Want Axiom Stock

February 19, 2021 admin Comments Off on Will Axiom Space IPO? Why Investors Want Axiom Stock

Will investors see Axiom Space stock? Unfortunately, there are no plans for an Axiom IPO right now. But some analysts think the company might go public in the next couple years.
So, will Axiom go public? Here’s what we know…
Axiom Space IPO: The Business

President, CEO and former NASA program manager Michael Suffredini co-founded Axiom Space with Executive Chairman Kam Ghaffarian in 2016. Headquartered in Houston, Texas, Axiom is an American aerospace manufacturer and orbital spaceflight services company. Like SpaceX and Blue Origins, Axiom aims to democratize space, making it accessible to everyone in the future.
Axiom’s big project is a commercial space …read more […]