August 11, 2020

Putin is a Narco.

Russia announced today that they have a coronavirus vaccine that is safe and ready for the public to use. Even though global markets immediately spiked this morning on the news, the hype slowly tapered out amidst concerns from western countries about how safe the vaccine can actually be. Keep in mind, this is coming from the same “President” that has already thanked his “Congress” for another “Term” at least 20 times.

People are beginning to suspect that Russia essentially passed the vaccine after the equivalent of a US Phase 1 Drug Trial.

So, even if the vaccine is real, it would have to undergo several rounds of strenuous testing by the FDA before it is approved in the US.

Zoom slowing down

The wildly popular video communication app Zoom (NASDAQ: ZM), is trading down nearly 8% today after Salesforce dumped their shares. The company, which reached record highs due to the COVID pandemic, nearly quadrupled in size since the start of the year. 

It seems like the move was a part of the larger market shift away from the Quarantine Winners to more reliable, defensive stocks. That being said, an 8% drop for $ZM is practically nothing compared to this year’s lows--we just have to wait and see if other investors will follow suit….

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All the Cool Kids Are Doing it

Tesla (NASDAQ: TSLA) shares are rocketing in after hours sessions following the announcement that the company will be undergoing a 5:1 stock split on August 31st. 

Common sentiment is that a stock split makes the company more accessible to retail investors and, likewise, gives the shares more room to run.

Tesla (NASDAQ: TSLA) shares are rocketing in after hours sessions following the announcement that the company will be undergoing a 5:1 stock split on August 31st. 

Common sentiment is that a stock split makes the company more accessible to retail investors and, likewise, gives the shares more room to run.

Open Interest and Volume

So what’s the difference between Open Interest and Volume on an options chain?

Well, volume tells you how many contracts trade hands in one day, while open interest shows you how many contracts are outstanding. The difference here is important; if you see large volume and high open interest accompanied by the options being traded at the bid, there is a good chance that the volume represents closing transactions.

On the other hand, low open interest and high volume at the ask can be indicative of opening positions, but you can’t be sure until the next day when the open interest updates.

And why does any of this matter? For a couple of reasons, actually: it can help you spot unusual activity and lets you determine whether or not the strikes you want to trade are going to be liquid. 

To learn more, grab your 7 day free trial to EVO; our Analysts can talk about this stuff for hours on end.