Restricted stock vs stock options

Share to Twitter Share to Linkedin Ericsson stock (NASDAQ NDAQ : ERIC) is down around 7% in the past month (twenty-one trading days), still not as bad a performance as the S&P 500, which was down 8.4% over this period. If you look at the change over the last ten days, too, the stock has returned 4.1%, performing much better than the broader markets. Ericsson’s recent Q1 ’22 earnings, saw revenue rising from $4.9 billion in Q1 ’21 to $5.42 billion in Q1 ’22. However, COGS and other operating expenses rose at a much faster rate, and operating income dropped from $518 million to $467 million over this period. Despite a drop in the effective tax rate, EPS dropped from $0.10 in Q1 ’21 to $0.09 in Q1 ’22. Now, is ERIC stock set to rally strongly or could we expect more turbulence? We believe that there is a decent 55% chance of a rise in ERIC stock over the next month (21 trading days) based on our machine learning analysis of trends in the stock price … [Read more...] about Ericsson Stock Poised For Take Off?

Share to Twitter Share to Linkedin After a 39% fall year-to-date, at the current levels, we believe Johnson Controls stock (NYSE: JCI) is undervalued. JCI stock fell from $79 in early January to $49 now. The YTD 39% fall for JCI marks an underperformance with -20% returns for the broader S&P500 index. Looking at the longer term, JCI stock is up 56% from levels seen in late 2018. This marks an outperformance compared to some of its peers and the broader markets, with Illinois Tool Works stock rising 45%, Emerson Electric stock up 36%, and the S&P 500 index rising 54% over the same period. This 56% rise for JCI stock since late 2018 was driven by: 1. Johnson Controls JCI ’ earnings, which rose 66.1% to $2.65 in 2021, compared to $1.59 in 2018, on a per share and adjusted basis, partly offset by 2. the company’s P/E ratio, which fell 6.1% to 18.4x currently, from 19.6x. The strong earnings growth above can be attributed to net margin … [Read more...] about Is Johnson Controls Stock Undervalued At $50?

Share to Twitter Share to Linkedin Topline The share prices of U.S. gun- and ammunition makers shot up Thursday after the Supreme Court struck down a New York law restricting concealed carry, the widest expansion of gun rights in over a decade that could lead to further rollbacks across the nation. Key Facts In a 6-3 ruling on Thursday, the U.S. Supreme Court struck down a New York State law restricting firearm owners from having a concealed carry weapon permit unless they had “proper cause” to do so and demonstrated “good moral character.” In a major blow for gun control advocates, Supreme Court justices ruled that New York’s concealed carry law violated the Fourteenth Amendment by stopping “law-abiding citizens with ordinary self-defense needs” from practicing their Second Amendment right to bear arms. The share prices of major gun- and ammunition makers surged higher following the Supreme Court decision : The largest public U.S. … [Read more...] about Gun Stocks Surge Higher As Supreme Court Rejects New York’s Concealed Carry Law

After Johnson & Johnson ( JNJ ) reported that it had beaten estimates for its fiscal second quarter earnings results, option buyers are taking actions that imply they think the share price will continue to rise in the future. JNJ reported adjusted earnings per share (EPS) of $2.48 and revenue of $23.31 billion versus analysts expectations calling for EPS of $2.21 and revenue of $22.21 billion. This may come as a surprise considering that the JNJ share price rose less than 1% the day after the report was announced. Prior to earnings, investors had bid up the share prices of JNJ, with a sizable number of put options being sold in the open interest . Option trading volumes indicated that traders had been buying calls and selling puts, and options activity after earnings suggest that traders are optimistic at the chances of JNJ shares trending higher going forward. That's because the price action has tested resistance , while the option activity suggests that traders … [Read more...] about Johnson & Johnson (JNJ) Option Traders Aim to Continue Positive Trend

The Realme GT 2 Pro was recently unveiled in India’s affordable flagship market. The Realme GT 2 Pro’s price in India is set at Rs 49,999, making it one of the most affordable flagships in the country. However, the Realme GT 2 Pro is not alone in the segment, with competition coming in from the Motorola Edge 30 Pro. So without any further delays, let us find out how the two phones stack up against each other and see which is the best smartphone under Rs 50,000 in India. Motorola Edge 30 Pro vs  Realme GT 2 Pro Realme GT 2 Pro Motorola Edge 30 Pro Snapdragon 8 Gen 1 SoC Snapdragon 8 Gen 1 SoC 8GB, 12GB LPDDR5 RAM 8GB LPDDR5 RAM 128GB/256GB UFS 3.1 Storage 128GB UFS 3.1 Storage 6.7-inch 2K 2nd Gen LTPO AMOLED, 120Hz Refresh Rate, HDR10+, Gorilla Glass Victus Protection 6.7-inch FHD+ AMOLED, 144Hz Refresh Rate, HDR10+, Gorilla Glass 3 Protection 50 MP Sony IMX766 Sensor with OIS + 50 MP Ultrawide Lens with 150-degree FoV + 3 MP Microscope … [Read more...] about Realme GT 2 Pro vs Motorola Edge 30 Pro: Full comparison of India’s best smartphones under Rs 50,000

Following a trend has been my trading motto but every few months, there comes a time when you feel that the ongoing trend may have been overdone and there could be a reversal, if not respite, ahead. I do not believe in being courageous and trying to catch a falling knife. But, I do believe that stocks and indices do get into a zone that requires one to slow down and shift direction to make room for possible reverse price action. Spotting these price points is not so easy but there is a sentimental indicator created from options premium data that gives decent indications of the ever-changing market mood. Before getting there, let us understand one property of option premiums. Option premiums are not the same at times. Let me explain with an example. Scenario 1: Close Stock on Day15: Rs 100 Monthly Expiry 100 Call on Day15: Rs 2 Scenario 2: Stock on Day1: Rs 110 Stock on Day15: Rs 100 Monthly Expiry 100 Call on Day15: Rs 3 As we can see in both … [Read more...] about Use this options sentiment indicator to gauge market extremes

Share to Twitter Share to Linkedin After a 3% rise year-to-date, at the current levels, we believe Johnson & Johnson stock (NYSE: JNJ) has only a little room left for growth. JNJ stock rose from $172 in early January to $177 now. The YTD 3% return for JNJ marks an outperformance with -20% returns for the broader S&P500 index. Looking at the longer term, JNJ stock is up 38% from levels seen in late 2018. This marks an outperformance compared to some of its peers, with Pfizer stock rising 24% and Merck stock up 28%. However, the returns for some of the large pharmaceutical companies were lower than that of the broader markets, with the S&P 500 index rising 54% over the same period. This 38% rise for JNJ stock since late 2018 was driven by: 1. Johnson & Johnson’s revenue , which grew 16% to $94.9 billion over the last twelve months, compared to $81.6 billion in 2018, 2. the company’s P/S ratio, which rose 17% to 4.9x trailing … [Read more...] about Should You Buy Johnson & Johnson Stock At $177?

Share to Twitter Share to Linkedin After a 3% fall year-to-date, at the current levels, we believe Keurig Dr Pepper stock (NYSE: KDP) has more room for growth. KDP stock fell slightly from $37 in early January to $36 now. The YTD -3% return for KDP marks an outperformance with -20% returns for the broader S&P500 index. Looking at the longer term, KDP stock is up 24% from levels seen in late 2019. This marks an outperformance compared to some of its peers and the broader markets, with Coca-Cola stock rising 13%, PepsiCo stock up 21%, and the S&P 500 index rising 18% over the same period. This 24% rise for KDP stock since late 2019 was driven by: 1. Keurig Dr Pepper revenue , which grew 16% to $12.9 billion over the last twelve months, compared to $11.1 billion in 2019, 2. the company’s P/S ratio, which rose 8% to 3.9x trailing revenues, from 3.6x in 2019, partly offset by 3. a 1% rise in its total shares outstanding to 1.4 billion … [Read more...] about Should You Buy Keurig Dr Pepper Stock At $36?

Option Selling, or Option Writing as it is popularly known, has always had a high success rate. It is said that almost 2/3rd of the options ever created expire worthless. The profits on Options Writing are made because 2/3rd of possibilities of movement are in Option Writers’ favor. A Stock can Either 1. Go Up 2. Go Down, or 3. Stay Steady We all know that with passage of time options premium goes down. Now, if it is Call or Put option we have written, one of the two - Up and Down - directions is going to make money for us. On top of that if the underlying asset does not move significantly then, too, we are going to make money. However, there is one more element. We have been talking about risks in the options and that when it increases it pushes the Option Premiums up and Premiums drop with drop in the risk in the options. This risk is nothing, but the volatility priced in the Options. In other words, volatility implied by Options. Options premiums are mathematically … [Read more...] about What is Options selling and is it a blessing or a curse?

(CNN) Dozens of international flights loaded with baby formula have already come into the United States, but formula stock rates are not improving. Experts say it will take at least another couple months for this to change, as both supply levels and consumers' perspectives level out. Through Operation Fly Formula, the White House has committed to import enough formula to make the equivalent of about 40 million 8-ounce bottles. More than a quarter of that supply -- enough to make 13 million bottles -- has already been delivered as of June 19, according to a statement from the US Department of Human Services. Still, stock rates for formula continue to hit new lows, according to data shared with CNN by market research firm Information Resources Incorporated, or IRI. Inside the White House's Spring scramble to contain the baby formula crisis More than 21% of formula products -- powder, ready-to-drink and liquid -- were out of … [Read more...] about Why aren’t baby formula stock rates getting better?