HSAPAY's week 30 of 40 Baby Financial Prep Plan

Aug 01, 2023 2:41 am

Welcome back ,

Here's HSAPAY's weekly update for July 31th, 2023 that'll help you and your growing family navigate the complexities of utilizing and investing in your HSA.

Macro Minute & Commodities

3-6 Month HSA Investment Return Entries

ArcelorMittal Steel Shipments Cooled Off in H1 2023

📊 ArcelorMittal just dropped their financial report for the first half of the year! 💰 Sales were $37.1 billion, which is a bit lower than last year's $44 billion. 📉 Steel shipments and production went down too, but don't worry, the EBITDA went up! 💸 From $1.8 billion in Q1 to $2.6 billion in Q2, and a total of $4.4 billion for H1. 🤑 Overall, things are looking pretty good for the steelmaker! 👍

Dollar Gets a Boost as Yen Weakens on BOJ’s Unscheduled Bond Buy

💰💹 The dollar index (DXY00) rose by +0.22% on Monday, bouncing back from early losses and benefiting from weakness in the yen. The yen dropped to a 3-week low against the dollar after the BOJ announced unscheduled bond purchases. However, the dollar's gains were limited by a decline in T-note yields. 📈📉 Monday's economic news in the US gave mixed signals for the dollar. On the bullish side, the Jul Dallas Fed manufacturing outlook level of general business activity increased by +3.2 to -20.0, which was better than expectations. On the other hand, the Jul MNI Chicago PMI only rose +1.3 to 42.8, which was weaker than expected. 🏭📉 Fed comments were mostly in support of the dollar. Minneapolis Fed President Kashkari said on Sunday that the inflation outlook in the US is "quite positive" and that a recession maybe avoided.

28th July, 2023: North American Copper Scrap Prices Surged on Index

📈💰🤑 The North American scrap metal market stayed relatively stable on July 28th, with Stainless Steel prices holding steady. Copper prices saw a surge, while Aluminum and Steel maintained the same rates. On the other hand, Brass and Bronze prices edged higher on the index! 💰👀 👉🏼🔥 Copper scrap prices were on fire! The price of Alternator scrap remained constant, but #1 Copper Wire and Tubing, as well as #2 Copper Wire and Tubing, increased by $0.06 per Lb. #1 Copper Bare Bright went up by $0.06 per Lb as well! 🚀🤑 #1 Insulated Copper Wire 85% Recovery and #2 Insulated Copper Wire 50% Recovery increased by $0.01 per Lb. #3 Copper-Light copper experienced a significant increase of $0.06 per Lb from the previous day's

August Covered And Naked Puts Options Trades Yield About 12.8% In Options Premiums

🌞 My August trades could bring in some serious 💰💰💰 with a potential 12.78% options premium income if all goes well! I've got a mix of 7 trades for 18 days, 1 for 25 days, and another for 4 days 📆. I actually own 3 of the stocks I've sold covered puts on 🤑. Of course, investing in equities and options comes with risk, but compared to other complex trades, this is a pretty straightforward and low-risk option 💪. Just remember, this article is for educational purposes only - do your own research! Since last week, I've opened 9 cash secured puts trades with an average return on risk of 0.723% or about 12.78% annualized 📈. Plus, the average annual dividend yield on these stocks and ETFs is about 1.58% 🤑. That's what we call a win-win

Stocks End Slightly Higher on Positive Global Economic News

📈🌟📊 The S&P 500, Dow Jones, and Nasdaq 100 all closed higher on Monday, with the latter reaching a 1-1/2 week high. 📈📈📈 This comes as Q2 earnings season gets underway, with 82% of reporting S&P 500 firms beating consensus expectations - the largest beat percentage since Q3 2021. 🎉🎉🎉 Additionally, a rally in WTI crude to a 3-1/2 month high lifted energy stocks and gave the overall market a boost. 🚀🚀🚀 Global bourses also showed strength, with China's Shanghai Composite reaching a 2-1/2 month high after surprising economic news. 🌏🌟📈

Bears Blast AMC Entertainment Stock Before Earnings

🎬💰💥 AMC Entertainment Holdings Inc (NYSE: AMC) shares are up 5.9% this afternoon, trading at $4.93 at last check. The rise comes after the movie theater chain achieved record-breaking admissions revenue in a single week thanks to the release of major films like "Barbie" and "Oppenheimer." 🙌🏼🎉🎥 Interestingly, AMC has also attracted high weekly options volume in the last two weeks, with 3,081,724 weekly calls and 4,873,223 weekly puts crossing the tape. 📈💰 However, with earnings reports due after the close on Aug. 8, bears may be edging out bulls. AMC stock has only closed higher twice in the last eight next-day sessions. Regardless of direction, the shares have averaged a 7.4% move over the past two years. 📊📉

Ford Stock Downgraded on Product Strategy Change

🚨📉 Jefferies just downgraded Ford Motor Co (NYSE:F) from "buy" to "hold" this morning, along with a price-target cut to $15 to $17. 😔 The company decided to slow production of its electric vehicles (EV) and focus on its commercial vehicle unit. Even though it's a reasonable decision, it's still disappointing news after the May 22 investor day. 😕 At the moment, Ford stock is down 0.5% to trade at $13.20. 😔 The security has been on a downward trend since encountering resistance above the $15 level at the start of the month, and is looking to finish July with a nearly 13% monthly loss. 😢 However, year-to-date, the shares are up 19%. 📈 Call traders have been keeping an eye on F, as evidenced by its 50-day call/put volume ratio of 2.39 over at the

Cheap Stock Alert: Microsoft and Its Huge Free Cash Flow - Options Plays Look Attractive

That figure allows us to estimate a price target. Here is how. First, note that $100 billion is approximately 4.0% of its $2.51 trillion market cap. Historically, however, large-cap stocks like this with huge free cash flow can have peak valuations with 3.0% to 3.33% FCF yields.

For example, if we divide $100 billion by 3.0%, the resulting market cap target is $3.33 trillion, up 32.8% over today's $2.51 trillion market value. At 3.33% the market cap target is $3.0 trillion, up 19.6% from today's market cap.

In other words, MSFT stock, trading at $336.95 in early trading on Monday, July 31, is worth between 20% to 33% more, or between $404 to $449 per share. Let's call it $427 per share, or 27% over today's price. We can use that to set a target price for options plays.

Analyst: Palantir Stock "Poised to Be a Major AI Player"

📈💻 Palantir Technologies Inc (NYSE:PLTR) shares are on the rise this morning, thanks to a bullish note from Wedbush. The software company's stock is up 6.9% at $19.04, as the analyst initiated coverage with an "outperform" rating and a $25 price target. According to the analyst, "Palantir has built an AI fortress that is unmatched and poised to be a major player in this AI Revolution over the next decade." 🚀💥 If PLTR continues to perform well, it could increase its year-to-date lead by 200%. The stock has just completed its 11th winning week out of the last 12, and this morning hit a new two-year high of $19.20. 🙌🎉

Alphabet Gushes Forth Record Free Cash Flow, Making GOOG Stock Cheap

🔥 Alphabet (GOOG) just crushed it in Q2 with a 💰 whopping 73% increase in free cash flow (FCF) 📈 from $12.59 billion to $21.778 billion! That's a huge boost from their Q1 FCF of $17.22 billion 🔥 GOOG stock is still undervalued at $133.01 on July 28, despite a recent spike before the earnings release on July 25. 📉 But don't worry, long-term GOOG stockholders can benefit from buying call options and shorting out-of-the-money put options for some great income! 💰💰💰 Plus, Alphabet is putting their FCF to good use by buying back their own shares, which can only mean good things for the future. 💪💰💸

3 High-Paying Unusually Active Put Options to Sell for Extra Cash This Weekend

Beyond the 100-day expiration mark, there are three put options that I believe will pique your interest. First up is the AI-driven Nvidia (NVDA), which aligns perfectly with their visionary CEO, Jensen Huang. Their latest growth driver is in the field of Artificial Intelligence (AI).

Next on the list is Delta Air Lines (DAL), with the Jan. 17/2025 $42 put. At $4.60 bid and an annualized yield of 6.8% based on Thursday's closing price of $45.75, it offers a 60 basis point advantage over the NVDA put. While Delta's stock has experienced ups and downs, its year-to-date growth has been impressive, with a 41% increase. However, due to the pandemic, it has dropped by 16% over the last five years.

Finally, Abbvie (ABBV) is worth a closer look. It's not just about their popular drug, Humira.

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.

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Enjoy,

frank

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