August 7, 2020

Gamers Rise Up

This morning, Trump signed an executive order limiting the US use of services from the Chinese Company Tencent, driving its shares down nearly 10%. 

A good portion of the concern was generated by the fact that it generates a good portion of its income from investments in and collaborations with US video game companies, as well as by owning the company that puts out League of Legends. 

Once the Kyles, Neckbeards, and angsty teen boys all lost their s#%t, Trump clarified that the ban was only on WeChat, a messaging service owned by the company. Following this, the company traded up so that it was only down 5%. 

We’ll see whether or not the world’s 8th largest company by market cap can weather the cold and frightful gaze of the Eye of Trump. 

Recovering?

Even though unemployment dropped to 10.2% in July, the markets aren’t too fond of the news. After all, the rate of recovery is slower than in previous months; with forward looking markets, this is a concerning omen for the next month. 

Between that and the fact that we’re paying attention to China again, the broad market didn’t see much upside today. 

Pretty soon here, we’ll see if the shift of youth back to college campuses shakes anything else up. 

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Myth: 90% Of Options Expire Worthless

Today, we decided to drop an options related knowledge bomb on you. A common argument for selling options rather than buying them is that 90% of contracts will expire worthless. This is not actually true 😲

The truth is, between 55% and 60% of contracts are closed on the open market. With 10% being exercised, that leaves about 30% or 35% of contracts expiring worthless. 

While we at EVO do appreciate a good sell side play, specifically the Wheel, we don’t do it based on the false assumption that selling options is inherently a more winning strategy—it pays dividends to understand the real risks associated with the strategy. 

For more options education, talk to out Analysts by using your 7 day free trial to our

This Bar Stool Looks Like A Thrown

Shares of NYSE: PENN soared more than 11.5% today after news of better than expected earnings were released.

Analysts expected losses to exceed $249.1 million versus a reported net loss of only $214.4 million. Losses per share were -$1.69 versus an expected -$2.06.

Investors are looking forward to a spike in traffic in the company’s Casinos across America and are eagerly awaiting the release of the Barstool Sports sports betting app.

As Barstool Sports founder once said, “All stocks only go up”. #stonks