August 17, 2020

Golden Boy

There is heavy debate over the Oracle of Omaha’s latest move away from Wells Fargo (NYSE: WFC) and JP Morgan (NYSE: JPM) further into Bank of America (NYSE: BAC) while opening a new position in Barrick Gold Corp (NYSE: GOLD). 

Might these actions potentially be prophesying coming midterm struggles in the US economy? Why is Buffett apparently reneging on his claim that Gold “has no utility?”

The play truly is baffling, and we’re sure that Jamie Dimon can’t be thrilled….

Tesla Spike

Tesla bulls today were overjoyed after $TSLA stock went up more than 11%. The stock reached an all time high, and crossed $1800 for the first time ever. The market as a whole went up today, but Tesla numbers far exceed the market. The stock has grown 30% in the past 4 days, marking the 8th time this year this has happened. 

Only god, and EVO traders ;), knows what Elon is going to do next, but we sure as hell can’t wait to see where this rocket ship goes.

JOIN THE CLUB

General Motors or General Electric?

Shares of General Motors (NYSE: GM) are rallying today after a Deutsche Bank Analyst revealed that GM CEO Mary Barra told him that the vehicle maker was evaluating an Electric Vehicle spin off. 

Seeing the market’s current response to anything in the EV space right now, the over 7% increase in shares of the company is nothing short of making sense; afterall, when the Analyst got a hold of that info, he put shares in the price range of $28 to $93. That’s a hell of a lot of upside with little to no downside.

American vs European Options

Calls with long dated expirations, more than 9 months or so, are called Long Term Equity Anticipation Security. Since it’s such a mouthful, everyone just talks about them as “LEAPS.” 

You can use these bad boys to simulate ownership of 100 shares of a company for cheaper than it would be to buy the shares outright. There are a couple catches, though.

The first is that you get no dividend, because you don’t actually own the shares. The second is that they are a decaying asset; they lose value to time decay. Even with these two things, though, they can be a good solution to get in on the gains of a highly priced stock.