Last week provided nothing short of a wild-ride in terms of the news cycle.
Particularly interesting is that the presidential race in the US was called on a Saturday, and with the amount of information that shows there is likely to be some strength to the lawsuits against the counting process.
This will make for an interesting week ahead, particularly in the stock & currencies markets.
Beyond Meat & a number of popular cannabis names will be reporting earnings this week, along with some energy companies, which will provide interesting market movements.
In the US, the JOLTS Job Opening report comes out Tuesday, which will be worth examining as it will likely begin to show more seasonal employment changes, along with some FED speeches & the Unemployment numbers.
These will give better insights into the current state of the economy in the US, and give some idea as to how far ahead of itself the market has become.
FX markets will also be a good indicator as to what’s to come, along with bonds across the globe.
There will likely be some volatility that traders can take advantage of, and that longer-term investors can use as entry points on their favorite stocks, whether to establish new positions or to build upon existing ones.
All in all, it’s going to be a fun week in the markets, but certainly one to keep a watchful eye on.
Snap Inc. stock trades under the ticker SNAP & has recently displayed technical strength worth taking a loser look at for an options trade.
SNAP’s share price was $45.38 at the close of trading on 11/6/2020, making the $45 and $46 calls & puts the center of today’s focus (eyeing the 11/13/20 expiration date).
From a calls perspective, the $46 level has a bit more risk associated with it, as their Theta is a bit high, which is to be expected given that they’re not quite in-the-money.
SNAP Stock Price: $45.38
10 Day Moving-Average: $41.82
50 Day Moving-Average: $29.86
200 Day Moving-Average: $20.97
RSI: 77
I’m not certain that they will have a lot of near-term strength, so I may think to purchase the already in-the-money $45 calls, and the $46 puts.
This could be particularly important as their RSI settles down & a new range is fully established.
The $45 calls are less risky in the event they fail, and the $46 puts are in the same boat.
SNAP is well worth a look by any near-term trader, and longer-term traders may think to look upwards if there are more lock-down measures implemented in the not too distant future.
Scholar Rock Holding Corporation stock trades under the ticker SRRK, and has recently displayed technical strength that is worth taking a closer look at.
SRRK stock closed for trading at $42.10 on 11/6/2020, after going on a tear since 10/27/2020.
While Scholar Rock Holding Company’s stock does not have options, they are still showing enough strength that it may be worth looking to trade the shares for a short-to-mid-term play.
As a member of the NASDAQ index, SQQQ when ratio’ed properly could be seen as a good hedging opportunity.
SRRK Stock Price: $42.10
10 Day Moving-Average: $38.28
50 Day Moving-Average: $20.28
200 Day Moving-Average: $16.54
RSI: 71
While the RSI is a bit high at the moment, the moving averages suggest that there is still near-term room to run for SRRK stock shares.
Traders might think to see how it functions in the pre-market tomorrow morning, before deciding to hop into a trade here.
Otherwise, given that levels that the moving-averages are at, there seems to be plenty of potential opportunities for dip-buying while the RSI settles down as there is still a lot of upwards pressure, courtesy of the trends.
Traders would be wise to eye the candlesticks while the figure out the entry point that they want to pursue, but SRRK is certainly something worth having on their radar at the moment.
Pinterest, Inc. stock trades under the ticker PINS, and closed for trading at $59.58 on Tuesday 11/3/2020.
After gapping up on 10/29/2020, they have begun to establish a new range, after a very strong recovery from the depths of market lows in late February/March.
I have previous traded PINS call options over the summer months, and am seeing another opportunity to profit from calls & common shares of their stock again.
With the last few days showing a bit of weakness, there is a better shot for longer-term investors to get a better price as they continue to climb.
For a short-term trader using options, the $61 or $62 calls (they offer 11/6, 11/13 & 11/20 expiration) look most appealing, as currently in pre-market trading they are up another 3% from yesterday’s price, to $61.40.
Given that most traders aren’t able to buy yet for today, you can expect to see that go even higher in the early morning hours of today’s session.
PINS Stock Price: $59.58
10 Day Moving-Average: $53.06
50 Day Moving-Average: $41.98
200 Day Moving-Average: $26.91
RSI: 68
Buying the $60 calls may be safer, but also be marked up to a premium not worth paying vs. the $61’s or $62’s.
Before buying any puts, I would look to see what their technical movement looks like intra-day, as the news regarding the election, COVID & international relations/terror may weigh on their price & begin to show where the top may be.
At the moment however, it looks like the $64-$65 short-term expiration (11/6) for puts may be the best bet for hedging.
This is a stock that will continue to benefit from COVID, and given other countries are resuming lockdowns again, they may be able to muster more strength with the “stay-at-home” economy, especially if there is another virus surge in the US, warranting more shutdowns.
Jumia Technologies stock trades under the ticker JMIA & has recently shown technical strength, making it a prime candidate for a short-to-medium-term trade.
JMIA stock closed at $16.05 on Monday 10/2/2020, and is up an additional 5.24% in pre-market trading on 10/3/2020.
Jumia Technologies stock has options for traders, where the $17 calls & $17 puts are about at-the-money.
JMIA Stock Price: $16.05
10 Day Moving-Average: $16.62
50 Day Moving-Average: $10.69
200 Day Moving-Average: $7.35
RSI: 58
I would be looking at the $17 calls for 11/20/20, and also $17 puts as a hedge. The $18 calls may also be worth buying in addition to the $17’s, but moving out to the 12/18/2020 expiration, as the $17 calls may open in the money.
The $18 calls may be aggressive for the near-term expiration, but owning them for another month out will give the stock the ability to establish itself a new range, with profits possible on the $17 puts as the price corrects & adjusts.
O2Micro International Limited trades under the ticker OIIM, and has recently shown solid growth worth taking a closer look at.
OIIM stock does not have options, so traders can only trade their common shares, which currently cost $6.42 (per 10/30/2020’s close), and are showing a bit of pre-market weakness (-0.2% at 8:30 am 11/2/2020).
After a correction from $6.23 on 10/22/2020, they’re now looking to establish a new range, and should have some more gas in them to run with.
OIIM Stock Price: $6.42
10 Day Moving-Average: $5.67
50 Day Moving-Average: $3.90
200 Day Moving-Average: $2.22
RSI: 70
If O2Micro International Limited stock can break through $6.44, then traders should expect to see them continue to run.
As there are no options, and OIIM is a member of the NASDAQ, SQQQ shares or call options may be your best bet as a hedge against OIIM’s performance.
However, anyone using SQQQ as a hedge should be aware that it is a 3x inverse ETF and may decay faster than OIIM appreciates, so a trader would only want to do this for a short term, and using a ratio of OIIM:SQQQ.
NIO Limited stock trades under the ticker NIO & has recently displayed technical traits worth taking a closer look at for a short-to-medium-term tade opportunity.
After a gap up on 10/14/2020 they have had an unstable performance, where the $28.48-$29.40 level is the resistance.
NIO stock has options available to traders, and I would be looking at the $28 puts for 10/30.
NIO Stock Price: $28.44
10 Day Moving-Average: $26.87
50 Day Moving-Average: $20.35
200 Day Moving-Average: $9.54
RSI: 63
For NIO calls, the Delta of the $27 options is 0.76, while the $28’s is 0.59.
In pre-market trading they’re down 2.5% to $27.76 (at the time of writing this), making the $27 calls worth looking into for the near-term expiration date (10/30).
Looking out further, the puts will likely outperform in the following week to two weeks, given the expected volatility & unrest from the election.
Bed, Bath & Beyond Inc. stock trades under the ticker BBBY & has recently displayed solid technical strength & is worth taking a look at for a short-term trade opportunity.
BBBY stock closed at $24.73 on 10/26/2020, coming off of two strong gap up days in October (10/1 & 10/14).
BBBY has options, so I may think to look at their $24.50 calls & puts (11/20/2020 expiration).
Buying the call that is slightly already in-the-money has a Delta of 0.56, with the put being a 0.44; both options will decay at a similar rate with thetas of -0.04.
Their vega is 0.026, which is helpful given that we are about to see a rise in volatility, so a trader can profit off of the calls faster, and as the market gets to be a little shakier cash out of them & sell a call that is just out0of-the-money, while keeping the put position to profit from during the turbulence.
BBBY Stock Price: $24.73
10 Day Moving-Average: $24.23
50 Day Moving-Average: $16.07
200 Day Moving-Average: $10.93
RSI: 82
Looking at BBBY’s stock chart, it appears as if they are beginning to lose some steam, hence the already in-the-money calls look more appealing to buy & sell for the quick profit, before selling an out-of-the-money call that will likely have a difficult time ever becoming worth anything.
Overall, there seems to be a lot of good opportunities for a short-term trader to capitalize on with BBBY stock & its options.
Educational Development Corp. stock trades under the ticker EDUC, and offers many interesting advantages that long-term investors may be interested in.
EDUC stock closed for trading at $18.19 on Friday 10/23/2020 (publishing this a day later than usual as I am on vacation), and gained an additional 1.21% today (8/26/20).
Breaking Down Educational Development Corp EDUC Stock’s Fundamentals
Investors may be interested in EDUC stock as it sports a P/E (ttm) of 16.1, combined with a Dividend Yield of 2.2% & A Payout Ratio of 11.8%.
In addition to that, their Debt/Equity (ttm) is 54.37, which is much lower than most of its peers & our Technical Rating for EDUC is 308.92, which is also very bullish compared to other stocks.
EDUC is a Micro-Cap stock, with a Market Cap of $151.98M, which contributes to its 19.2% % Institutional Ownership.
Their Total Cash (mrq) is $22.64M, which is especially impressive when you look at their Total Debt (mrq) of just $11.3M.
EDUC stock’s P/B is 4.35 & their Beta is a little hotter than most stocks at 1.73, which is to be expected from smaller stocks, especially in turbulent times such as 2020.
Educational Development Corp. EDUC Stock’s Technical Performance Has Been Strong
Educational Development Corp.’s stock has had a solid year for 2020, after 40 years of impressive growth.
While their price from Friday’s close was even with their 10 Day Moving-Average, their continued growth shows signs of being able to keep gaining, with the potential for some new attractive entry points in the event of anticipated election-time volatility.
EDUC Stock Price (10/23/2020): $18.19
10 Day Moving-Average: $18.19
50 Day Moving-Average:$15.99
200 Day Moving-Average: $9.45
RSI: 58
EDUC’s stock also has a strong Technical Rating of 308.92.
For comparison sake, the average Consumer Discretionary Sector average rating is 83.01, and the Distributor Industry’s score is even worse at 59.28, so they offer strength compared to their direct peers.
Educational Development Corp. EDUC Stock’s Fundamentals Vs. The Consumer Discretionary Sector’s Averages
EDUC’s stock offers many fundamental advantages over its peers in the Consumer Discretionary sector.
EDUC’s P/E (ttm) is 68.6% better than average, and their P/B is 33.4% better than the average of their sector peers.
Their Debt/Equity (ttm) is most impressive, being ~75% better than average & their Payout Ratio is 82% better than average.
EDUC’s Technical Rating is also 272% higher than their average sector peer, showing their past year to be quite strong.
EDUC’s Dividend Yield is 10% lower than average, but more stable given their Payout Ratio.
While their Market Cap is 98% lower than average, their Total Cash (mrq) is only 68% less than average.
EDUC’s higher than average Beta (+12.3%) & Micro Cap status are likely the largest contributors to their 67.6% lower than average % Insitutional Ownership, which shouldn’t deter an average investor.
Educational Development Corp. EDUC Stock Fundamentals Vs. The Distributors Industry Averages
Educational Development Corp.’s stock also outperforms their average peer in the Distributors Industry as well.
EDUC stock’s P/E (ttm) is 30% better than average, and their P/B is 50% better than the industry average.
Their Payout Ratio is 51% better than average, and their Debt/Equity (ttm) is 36% better than their average peer.
On a Technical Rating basis, they outperform the industry average by 421%!
Of course, their Market Cap is 96% less than average, and their Total Cash is 85% over par; leading to their ~70% less than average % Institutional Ownership.
Educational Development Corp. EDUC Stock Performance Vs. The S&P 500 & NASDAQ Indices
Since their first day of trading 40+ years ago on 3/18/1980, EDUC stock has grown by 7,176%.
When you factor in the Dividends that would have been collected over that time, they’ve grown ~9,292%!
For comparison, the S&P 500 has only grown 3,163.8% in that time period (excluding dividends).
They have also outperformed the NASDAQ Index in that same time period, as the NASDAQ has grown 8,087.3% (excluding dividends).
With this lifetime growth in mind, EDUC stock looks like a very attractive long-term investment opportunity.
Tying It All Together
EDUC stock offers many attractive points for long-term investors.
Their value is much better than that of many of their peers, and their debt:cash management is responsible, which is going to be important moving forward.
Their dividend yield may not be as high as most of the stock I post about, but their financial responsibility shows that they are in solid shape for the future.
It is definitely worth taking a closer look at EDUC stock for a long-term investment opportunity!
Marin Software Incorporated stock trades under the ticker MRIN & has recently shown a good deal of technical strength.
MRIN stock closed for trading on 10/23/2020 at $3.45/share, after gapping up a couple of days prior.
There are no options for MRIN stock, so the fact that they’re down 9.6% in pre-market trading (as of 9am on 10/26), paving the way for a potential attractive entry point.
As a member of the NASDAQ, a hedge agains them would be something like an SQQQ, an inverse NASDAQ ETN.
MRIN Stock Price: $3.45
10 Day Moving-Average: $1.85
50 Day Moving-Average: $1.43
200 Day Moving-Average: $1.42
RSI: 68
As the 50 Day Moving-Average just crossed the 200 Day & will continue to climb, there should still be some steam in MRIN from a short-term trade perspective, making it worth taking a closer look at for traders.
