#equity delta stock

[enterprisewired]

Toyota Invests Additional $500 Million in Joby Aviation for Electric Air Taxi Development

[Source – manufacturingtodayindia.com]

Strengthening the Partnership

Toyota Motor has announced a further investment of $500 million in Joby Aviation to support the development and commercialization of Joby’s electric air taxi. This new investment follows Toyota’s earlier contribution of $394 million, bringing the total to nearly $900 million. The funding is part of a strategic alliance aimed at facilitating Joby’s electric vertical takeoff and landing aircraft (eVTOL) production. The investment will be made through a purchase of common stock, with the first tranche set to close later in 2024 and the second in 2025.

Driving Sustainable Urban Mobility

Joby Aviation is leading the way in developing eVTOL aircraft, which are considered the future of urban air transportation. These aircraft offer a sustainable solution for overcoming modern mobility challenges by providing quicker, eco-friendly travel options. Toyota Motor North America CEO Ted Ogawa highlighted the potential of electric air taxis to address ongoing transportation issues, saying, “We share Joby’s view that sustainable flight will be central to alleviating today’s persistent mobility challenges.”

Joby is also making progress toward certification and commercialization of its electric aircraft. The company recently expanded its facilities in California, emphasizing its dedication to advancing urban air mobility.

A Deepening Collaboration

Toyota is Joby’s largest external shareholder, and both companies are collaborating closely on the project. Toyota engineers are working alongside Joby’s team in California, focusing on the development and production of key components for the eVTOL aircraft. Joby CEO Joe Ben Bevirt described Toyota’s involvement as crucial to the company’s long-term success. “This will further cement their incredible collaboration with Joby,” Bevirt said, emphasizing both companies’ commitment to revolutionizing daily transportation.

In addition to providing financial support, Toyota has signed a long-term agreement to supply essential powertrain components for Joby’s electric air taxis. This partnership is expected to play a pivotal role in shaping the future of air-based transportation.

Growing Interest in Electric Aviation

The electric air mobility sector has attracted the attention of several automakers and airlines. Stellantis, the parent company of Chrysler, recently announced an additional $55 million investment in Archer Aviation, another player in the eVTOL space. Airlines, including Delta Air Lines, are also exploring the potential of electric air taxis. In 2022, Delta invested $60 million in Joby for a 2% equity stake, with plans to offer air taxi services to airports in major cities like New York and Los Angeles.

As Joby continues to advance, its first commercial services could begin within the next few years, marking a significant milestone in the evolution of urban air transportation.

[mood-report]

Market Comment

The Magnificent Nvidia market continues, yet NVDA may have left some near term exhaustion clues with Friday's close below its intraday volume shelf that also formed a daily doji candlestick. Weekly volume was great however, so any pullback, even a re-test of the 670 area, should likely be corrective. But I'm increasingly sensing NVDA's limelight could be waning.

It remains in a highly cyclical and competitive business, and there is the nontrivial possibility that NVDA's moonshot might simply be the result of pull-forward demand from frantic customers triple ordering chips Covid-style.

If so, and if momentum is indeed waning, even a simple correction could clip hundreds of points. There is even the May 2023 unfilled gap at 305.38 to contend with should it want to. A whopping 60.97 points wide. Some stocks barely move that much in a year.

Sentiment wise, upside call speculation has wildly skewed NVDA's options chain. Dealers, after selling those calls to buyers, neutralize their resulting negative delta by buying EQ and NQ futures, further adding to the upward pressure.

Notice the crowded long positioning, via Goldman. This will end only when animal spirits cease for whatever reason.

Speaking of sentiment, Private Equity is still up to its old tricks.

KKR-Owned April Seeks Traditional Loan to Refinance Private Deal

French insurance broker April Group is turning to traditional lenders for a €1.2 billion syndicated loan to help refinance debt that it took out from private creditors just over a year ago. ~Bloomberg

Debt to refinance debt, yet again.

And, ICYMI, investing has gotten so easy that The Whiz Kids are back.

These Teenagers Know More About Investing Than You Do

Regarding the S&P 500, the clock is ticking on the B-wave thesis. The usual target of an overthrow such as this is the 127% Fib extension (5179.57). Yet just above is a juicy confluence area, 5296.44-5325.55.

Any sustained trade above 5325.55 would trigger, for me, a different scenario: an ending diagonal.

The ending diagonal scenario interests me because it would explain the "relentless" nature of the current rally -- relentless being an unconscious social mood description of third waves that I have noticed over the years (and it might not be finished yet).

An ending diagonal would also provide for a re-test of the SPX 4400 "November 13th" area that has been previously covered here at Mood Report with the charts of UPS, NKE, FDX, and now PANW.

For now I play only with options -- NVDA call spreads against very short-dated SPY puts and OTM NVDA puts.

NVDA now has a $2T market cap and a 50% Implied Vol, multiples higher than its peers, which effectively makes it the most dangerous stock in the market.

Caveat emptor.

[rainsmediaradio]

PBAT Achievements at a Glance-7months Year End 2023 - Dr Kenny Odugbemi

PBAT achievements at a glance-7months year end 2023

PBAT Achievements at a Glance-7months Year End 2023 PBAT has stabilized the polity and reduce tension associated with ethnics and religious bigotry to better managing our diversity, whist ensuring balance spread of appointments across different regions to further reduce tension on perceived marginalization with attendant emergent of IPOB, Niger-delta- militants, Oodua, Arewa consultative forum IPOB and Yoruba Nation calling for secession Other notable achievements includes not limited to the following ✓Renew commitments in war against insecurity Waging fierce war against corruption ✓Introduction of different level of palliative cutting across regions and demographics with peculiar needs ✓Introduction of discipline and control, transparency in CBN ✓Cementing fractured relationship with Work powers ✓Accentuating and prioritizing regional Cooperation with African sub-region and encouraging build up of AFCTA agreement ✓Returning dignity to body of politics - intervention of Ondo and River state saga ✓Attracting several FDI's and contract sealed many trade agreement across Europe covering all sectors ✓Removal of fuel subsidy first day in office -very audacious ✓Unification of exchange rate ✓CBN halt injection of usual $1.5bn monthly in capital markets and now paying backlogs ✓Deregulation of power and rail services- exclusive list to concurrent for State equity participation ✓Instituting President Tax review backed up by executive orders, bills waiting for review at upper and lower house to become law before implementation ✓Relaunch of PH refinery with capital expenditure of $1.5b ✓Social intervention support of N2b to 36 states including Abuja to cushion effect of subsidy ✓Support for manufacturers, Start up and Nano enterprise at single digit 9%annually ✓Created additional 10 MDA's to facilitate new streams of revenue and foster professionalism across all the sectors ✓Setting service delivery unit to better manage all 29+ MDA'S with KPA's and KPI'S ✓Removal of ASSU from IPPS to better managing Nation tertiary institution s ✓Not borrowing more fund for National projects- adopting PPP initiatives ✓improving primary health across 36 states + Abuja through contract agreement with major global development partners it ✓ launching of credit facilities at single digit across board to reduce civil services corrupt tendencies *Economic vitals ✓Increase in Nigeria stock market by 34.11% ✓GDP - +2.54% ✓Oil production rise by 13.4% ✓Balance of trade in surplus of 52% highest in 5years ✓External debt -$41.59b ✓Pension fund aggregate-N77trn ✓Recovery of N12trn out of N33trn declared in CBN audit report ✓Public debt -N87.91trn ✓inflation-28.2% ✓Food inflation-31.5% ✓Divestment of multi nation P&G,GSK and other -$4.5b ✓ devaluation of Naira by 41% Read the full article

[ruthfordchelsea]

tastytrade: The Ultimate Platform for Trading Options and Futures

tastytrade, formerly known as TastyWorks, offers multiple trading options, including options, futures, stocks, ETFs, commodities, and indices. It is also best suited for traders interested in honing their skills in other trading areas, such as crypto. tastytrade features and functions are designed keeping in mind the needs of all active traders; however, it is mostly suitable for professional futures and options traders.

Beginners can check out the excellent research tools and educational content offered by tastytrade, but the lack of investment selections and the low pricing structure may not be suitable for passive and casual traders. 

In this tastytrade review, we will discuss the tastytrade platform’s features, trading products, fees and commissions, deposits and withdrawals, and security measures employed. So, let’s find out why tastytrade is considered the ultimate platform for trading options and features.

What makes tastytrade the best in the market?

The tastytrade trading platform provides the best platform without upsell, bots, or endless wait times. Traders can get a good deal with low commissions, important financial tools, and an easy-to-use platform with advanced risk analysis tools and real-time quotes.

tastytrade caters to active traders who deal with futures and options trading, offering them affordability and robust research tools, making the platform enticing for options and futures traders. The features on tastytrade web desktop and mobile platforms are fully customizable, including position details, watchlists, and trading page details like volume, theta, and delta.

The platform mainly specializes in stock, options, and futures trading, providing traders with a range of offerings, including singles and multi-leg action, contracts, commodities/futures, ETFs, treasury, bills, and even cryptocurrencies. It uses a smart auto-routing system that focuses on price movements and orders in quality. In addition, tastytrade also has interactive and complex charting tools with notable enhancements, allowing trades to create chart configurations outside the main dashboard.

tastytrade Trading Products

Since tastytrade is primarily built for futures and options traders, it has a slightly limited range of offerings compared to other online brokers. However, traders can also find other trading products besides options and futures – stocks, ETFs, commodities, and indices.

The range of trading products on tastytrade allows traders to find the best opportunities in various market conditions and choose their products wisely based on their investment objectives, risk tolerance, and financial standing. Under options trading, tastytrade offers stock options, ETF options, and index options.

The futures trading segment exposes SMFE and CME futures, including equity index futures, interest rate futures, foreign currency futures, energy futures, metals futures, agricultural futures, volatility, cryptocurrency, and livestock futures.

There is also an option of options on futures trading that gives investors the power to buy and sell futures contracts at specific prices. Futures options give greater returns on capital since the futures are leveraged.

tastytrade Fees and Commissions

Traders always seek lower and lower commissions, giving them more freedom to trade efficiently. tastytrade has introduced excellent rates for traders to open their trades and close them even at a better price. The opening and closing commissions have been mentioned in the table below –

Trading Products

Opening Commission

Options on Stock & ETFs: $1.00 per contract ($10 max per leg)

Options on Futures: $2.50 per contract

Options on Micro Futures: $1.50 per contract

Stock & ETFs: $0 unlimited shares

Futures: $1.25 per contract

Micro Futures: $0.85 per contract

Smalls Futures: $0.25 per contract

Closing Commission

Options on Stock & ETFs: $0

Options on Futures: $0

Options on Micro Futures: $0

Stock & ETFs: $0

Futures: $1.25 per contract

Micro Futures: $0.85 per contract

Smalls Futures: $0.25 per contract

Options

Stock & ETFs: $10 max per leg

Futures: $0

Cryptocurrency: 1% of total cryptocurrency purchases and 1% of total cryptocurrency sales

tastytrade Deposits and Withdrawals

Funding a tastytrade trading account is simple and can be done in the most stress-free way, paying very little to no additional fees depending on the payment method chosen. Traders can deposit funds online or in the old-fashioned way via the following methods – transfer accounts, bank transfers, wire transfers, and checks. One of the best things about the tastytrade trading platform is that there is no minimum requirement for deposits and withdrawals.

tastytrade Security

tastytrade prioritizes the security of client information and funds on the platform since trading involves the investment of huge sums of money. The security measures employed by the tastytrade platform are top-notch, including the availability of two-factor authentication via apps and SMS, face recognition and fingerprint, and excess SIPC (Securities Investor Protection Corporation) coverage. Moreover, tastytrade has not reported any major security breaches or experienced outages during its operation.

Conclusion 

To conclude this tastytrade review, the trading platform is designed for active traders primarily interested in trading derivatives, including futures, options, and options on futures. It is an excellent place for beginners to hone their skills and develop knowledge to analyze the risks and rewards involved in options and futures trading strategies.

However, for serious and professional traders, there is plenty of unique content, attractive pricing, and useful tastytrade tools to access the financial markets and participate in trading. In addition to this, since there is no monthly fee, minimum deposit requirement, account opening charges, or inactivity fees, tastytrade can be tried out seamlessly by both beginners and professional traders.

[maheshwariinstitute]

How to Trade in Futures and Options?

Trading futures and options is a lucrative but complex endeavor involving speculative bets on the price movements of various assets like commodities, stocks, and currencies. The trading mechanisms, contracts, and strategies for futures and options are distinct, but both offer the chance to hedge against market risks or gain from market movements. Maheshwari Institute's Advance Trading Strategies is an ideal starting point to learn futures and options trading for those intrigued by the potential for high rewards but hindered by the complexity. This course offers a deep dive into the mechanisms and strategies you need to trade successfully in these financial derivatives.

The course starts with "Options Trading Strategies for Equity, Index, and Currency," where you will engage in option chain analysis, touching upon topics like Put Call Ratio, Open Interest Analysis, and more. You'll also study different options strategies, including Bull Spread, Bear Spread, and Straddle. The course provides a detailed look into option Greeks like Delta, Gamma, Theta, Vega, and Rho.

As you proceed, you'll have the opportunity to learn futures and options trading strategies specific to indices like the Nifty Bank, Nifty 50, and Nifty Financial Services. The second module covers "Advance Trading Strategies for Equity, Commodity, and Currency," you will learn about price action trading using Heikin Ashi Candles, scalping, and reversal trading strategies employing Bollinger Bands. The third module focuses on the Elliott Wave Theory, giving practical insights into its application in live markets.

This course is tailor-made to provide experienced traders with the knowledge and skills to excel in the vibrant world of futures and options. To maximize your trading potential, don't hesitate to enroll and learn futures and options trading through Maheshwari Institute's comprehensive course.

Why is Maheshwari Institute the right choice?

Maheshwari Institute stands out for multiple reasons for those who want to learn future and option trading. 

The Institute boasts an impressive track record, having trained over 10,000 candidates in various aspects of trading and investment. Furthermore, they have successfully placed more than 1,000 students in reputable firms, reflecting the courses' quality and employability. 

Adding to the Institute's credibility are the numerous corporate training sessions and seminars they have conducted, which not only widen the student's exposure but also allow them to network with industry experts. 

Last but not least, the Institute provides hundreds of internship opportunities, allowing students to gain practical experience and better understand the real-world applications of their training.

Ready to learn futures and options trading? Find out more about Maheshwari Institute's Advance Trading Strategies program here.

Source URL: https://maheshwariinstitute.com/blog/how-to-trade-in-futures-and-options/

[harbourfronttechnologies]

Momentum in the Option Market, Part 2

Momentum is a widely observed phenomenon in the stock market that refers to the tendency of stocks that have exhibited strong price performance in the past to continue performing well in the future, and vice versa. The momentum effect suggests that stocks experiencing upward price trends tend to attract further buying interest, leading to additional price increases, while stocks on a downward trend tend to experience continued selling pressure, resulting in further price declines. This phenomenon is often attributed to various factors, including investor psychology, market trends, and herding behavior.

Momentum is not limited to the equity market alone; it also manifests in the option market. As we have previously discussed, delta-hedged straddle option positions have shown evidence of exhibiting momentum. Recently, in Reference [1], further research has delved into exploring momentum within the option market by extending the analysis to include option factors. The authors pointed out,

In this paper, we extend tests for factor momentum to the options markets, relying on a novel set of 56 factors based on sorts of daily delta-hedged call options. We find corroborating evidence for both the existence of factor momentum and its explanatory power for momentum in the factors’ underlying assets: First, time-series and cross-sectional factor momentum strategies are profitable. Their returns are distinct from returns of an equally-weighted factor portfolio and robust to the factor model of Horenstein et al. (2020). Second, strategies relying on a one-month formation period are largely driven by factor autocorrelation. However, the longer the formation period, the more important are high mean factor returns and their persistent variation as momentum drivers. Third, as in Ehsani & Linnainmaa (2022) and Arnott et al. (2023), momentum effects are the strongest in the option factors’ largest eigenvalue principal components. Fourth, and extending the findings in Heston et al. (2022) to single option returns, we find momentum at the option level. Spanning tests suggest that option factor momentum subsumes option momentum and not vice versa.

This study presents additional insights into how momentum can influence options. By understanding and harnessing momentum in the option market, investors can potentially enhance their trading strategies and optimize their risk-return profiles.

Let us know what you think in the comments below or in the discussion forum.

References

[1] Käfer, Niclas and Moerke, Mathis and Wiest, Tobias, Option Factor Momentum (2023), https://ift.tt/OH1Fje2

Post Source Here: Momentum in the Option Market, Part 2

from Harbourfront Technologies - Feed https://ift.tt/TWfanpd

[moneyplanttradingacademy]

Learn Stock Market Courses in Ahmedabad and Register Free for this Share Market Courses for Trading at Our Training Institute in Ahmedabad

Learn and implement practical strategies by joining the Stock Market Courses in Ahmedabad. Money Plant Trading Academy is launching Share Market Course in Ahmedabad.

Importance of Stock Market Courses in Ahmedabad

The stock market is the backbone of any economy and therefore is an everlasting field. Many youngsters now returning to the stock market and willing to make a full-time career in the same. People think that from the stock market anyone can earn fast and easy money, and here is what everyone is mistaken about. This is where Share Market Training is needed and Share Market Course to learn. The stock market is not a gambling game it’s the place where trading is done on the basis of the rule set by a regulatory body. In India SEBI (Securities and Exchange Board of India) is the stock market regulatory authority. People who want to enter into stock are advised to get proper Share Market Training in Ahmedabad so that they get to know about all the rules and regulations of the stock market. There are various Stock Market Courses in Ahmedabad and in the other cities of India available. Share Market Course in Ahmedabad give you the proper way of trading. You learn many trading strategies through the Stock Market Training Courses in Ahmedabad.

What will you Learn from Stock Market Courses in Ahmedabad ?

Even if there is a risk involved in the stock market, with the proper training from the Share Market Course in Ahmedabad one can earn a significant profit. The risk factors depend on one's willingness to accept a profit or loss. Many people do trading at their part-time business to make extra money. However, having fundamental knowledge is necessary to earn some profit and avoid the chances of loss. In Stock Market Courses in Ahmedabad, you will get to learn various stock market strategies and implementation. You will learn the techniques of trading and the tactics of reducing the risk. The curriculum of

The Stock Market Courses in Ahmedabad include an introduction to the capital market i.e.  Primary Market, Secondary Market, Advance Technical Analysis, trading basics Understanding of Candlesticks & Indicators, etc

Money Plant Trading Academy’s Share Market Course in Ahmedabad

On a heavy demand by the learners from Ahmedabad Money Plant Trading Academy has recently started its franchise.  The main reason behind starting Stock Market Courses in Ahmedabad is to share knowledge and to teach the delta trading strategy to learners. Delta trading is the strategy with which traders can control the directional risk of their portfolio. Money Plant Trading Academy has separate PRO classes to teach delta trading. Traders having at least 15 months of trading experience are eligible to attend the Delta Neutral PRO classes.  Because the tricks given by our expert trainer are only be understood by the experienced traders. If you are new to trading then Money Plant Trading Academy has a basic Equity Derivative trading course to help you kick start your trading career. There is hardly any Share Market Course in Ahmedabad that teaches delta trading.

What Facilities will you Get in Money Plant Trading Academy’s Stock Market Courses in Ahmedabad ?

Learners get the following benefits from Money Plant Trading Academy

Money Plant Trading Academy provides full-fledged online training so that learners can attend classes from the comfort of their homes.

Free study material

Teaching in Hindi and Ahmedabad also so that language could not become a barrier in the process of knowledge earning

Recorded video lectures so that if any lecture got missed learners don’t fall behind.

Dedicated attention toward each learner.

Class tests in between the course to check the understanding of the learner

 Live trading environment.

 Initial trading guidance

Trading desk facility

Exclusive trading secretes from the derivative market expert

Course completion certificate

There are more Share Market Training Branches of Money Plant Trading Academy in Ahmedabad

Other than Stock Market Courses in Ahmedabad Money Plant Trading Academy has it’s headquarter in Ahmedabad. This Stock Market Training Course is one of its kind. He has years of derivatives market experience and is a very successful derivative trader of his time. The secret behind his success is the directional trading approach i.e. Delta trading. Delta trading is not so popular but it surely has the potential of reducing the risk and maximizing the returns. Money Plant Trading Academy’s share market course at our training institute in Ahmedabad focuses on teaching delta trading followed by basic equity trading. So for now Money Plant Trading Academy is conducting a Stock Market Courses in Ahmedabad.

[jmj-process-journal]

Let’s Goooooooo

I am excited to join the newest IYA cohort and learn from and with you all. I am a finance professional with experience in stock market, corporate equity and FP&A world. I also have extensive experience in the DEI/ERG space and executive coaching with an emphasis on inclusivity and thought leadership.

My goal is to always activate the right and left side of my brain while allowing space for my heart/passions to exists in every room I walk in and with every exchange I have. 

My creative expressions include dance, learning about technology and how it impacts the macro economy, 3D design, engaging in community service, participating with my sorority (Delta Sigma Theta Sorority, Inc.) and growing with my beautiful family (Tj - husband, Myjoi -13yo daughter, Khari 3yo son).

I am looking forward to meeting and building with you all! Shoutout to the leaders of NOW!

[billehrman]

Getting Off Life Support

Getting Off Life Support

Monetary authorities both here and abroad feel more confident in future economic growth as we are finally getting our arms around the Delta variant. Openings can accelerate once again.

They are on the brink of slowly removing extraordinary measures such as buying $120 billion of bonds here and nearly $100 billion abroad per month. This is excellent news as it is a vote of confidence that better days are ahead, so it’s time to get off life support and return to standard monetary policies. Tapering is not tightening, and even when they begin to hike rates, it probably won’t be until 2023, and the “real” funds rates will likely remain negative, which won’t put the brakes on growth.

Monetary authorities realize that their policies cannot impact shortages and supply line issues which penalize economic growth while boosting inflation. Investors have not appropriately factored into their forecasts what the other side will look like after these problems abate. We see much higher production rates as pent-up demand is filled and inventory levels are normalized. We see higher operating margins, profits, and cash flow as extraordinary costs normalize next year, for example, transportation expense. S&P operating margins are forecasted to hit close to 14% by the end of 2023, up from 12.1% in 2019, and earnings could exceed $235/share up from $162/share in 2019.

While we remain positively inclined to equities over the next 12 to 24 months, uncertainties persist, keeping a lid on markets for now. While monetary policy is more in focus, fiscal policies here and abroad are still in the air. And we still need to vaccinate the unvaccinated!  Our government is dysfunctional, and China needs to take a more proactive role over Evergrande, a problem caused by their own monetary and fiscal policies. It will take many months for shortages and supply line issues to diminish. Still, the other side looks better by the day as global liquidity continues to build; we expect a surge in capital spending supported by governments everywhere, and inflationary pressures subside.

Let’s look at the key issues facing investors.

News on the Delta outbreak continues to improve by the week. The number of new cases has declined by 12% here and abroad over the last 14 days, while deaths, which lag, continue to increase here but are still falling abroad. More than 6.03 billion doses have been administered worldwide across 184 countries at a daily rate of 31.5 million doses per day. In the U.S., 387 million doses have been given so far at an average rate of 750,942 doses per day. Infectious disease experts that vaccinating 70-85% of the population would enable a return to normalcy which should be reached globally within six months. Fortunately, Pfizer, Moderna, and J&J will have enough doses available to handle globally even booster shots next year. We learned last week that the FDA panel recommended booster shots for ages 65 and up as well as those in need and that J&J’s booster shot provides 94% protection two months after the first dose. All good news. Hopefully, drug companies come up with a combination flu/coronavirus shot within a year.

The Fed took a more hawkish view gaining control over the narrative in their meeting last week, commenting that tapering is ready to begin now, although raising rates is well down the road. The financial markets took it in stride as the Fed will continue buying hundreds of billions in debt over the foreseeable future. The “real” funds' rate will remain negative for many years, which is anything but restrictive. Fed Chairman Powell said all the criteria to begin tapering were “all but met,” implying that it would be announced and start in November and be finished by mid-2022. We still do not see a rate hike until 2023 and we question the Fed’s trajectory of hikes into 2024. While no one knows when shortages and supply issues diminish, we are confident that inflation, on the other side, will be a positive surprise as productivity gains will be solid, benefitting from the surge in technology spending and operational changes made during the pandemic. Flows from abroad arbitraging rates continue to limit the steepening in our yield curve, which supports our markets.

What can be said about our political system other than it is dysfunctional? Everyone agrees that we need a sizeable traditional infrastructure bill, so why tie it to a social agenda and a debt ceiling? Passing the debt ceiling should be a non-event, too, but here again, the Dems are holding it hostage to their huge social spending bill. Our domestic and foreign policies are in disarray, as shown by Biden’s falling poll numbers. It may be so bad that he needs a victory, so he forces his party to separate the bills and move forward asap with the traditional infrastructure bill needed to rebuild our aging base to enhance our global competitive position. That’s our bet.

The domestic economy is a tale of two cities as services are suffering due to the Delta variant. At the same time, the production end is strong, producing everything that it can limited only by shortages and supply line issues. Key data points reported last week include: index of the consumer in September rose slightly to 71.0, current economic conditions fell to 77.1, and consumer expectations increased to 67.1; August leading indicators rose 0.8% to 117.1, coincident rose 0.2% to 105.9 and lagging increased to 106.3; composite output index fell to 54.5 in September due to shortages and supply line issues, services index fell to a 14 month low at 54.4, manufacturing PMI was a still strong 60.5, and manufacturing output was 55.2; building permits rose 6% in August and housing starts increased 3,9%, but builder confidence fell to a 13 month low, and jobless claims unexpectedly increased to 351,000. It is important to note that consumers see the worst buying conditions in decades due to high prices. And finally, the U.S opened air travel to vaccinated foreigners which should boost growth. The economy is set to reaccelerate as the Delta variant ebbs. Still, shortages and supply line issues will limit growth for the foreseeable future, setting up a very strong and profitable mid-2022 onward as these problems diminish, especially if an infrastructure bill is passed.

The OECD lowered its forecast slightly for global growth in 2021 to 5.7%, keeping China’s growth unchanged at 8.5% (we are lower); Japan at 2.5%; U.S. growth down to 6.0%; India at 9.7% for FY 2022; 4.3% in the Eurozone; Southeast Asia at 3.1% and 4.0% in Australia. The recovery pattern remains uneven due to the coronavirus, shortages, and supply line issues, with increasing inflationary pressures everywhere. The outlook for 2022 growth was lifted to 4.7% as these problems abate.

Investors are focused on China. Not only has growth slowed quickly due to covid, but their largest developer, Evergrande, is on the brink of bankruptcy. It has been here before.  While we expect the financial fallout to remain limited to China, it clearly will penalize near-term growth, which had already been under pressure due to the Delta variant. The People’s Bank of China has already injected around $71.0 billion into the banking system and stands ready to do more. We fully expect the PBOC to lower reserve requirements shortly and pump a lot more money into their system. Plans are also being made to step up fiscal support, as jobs are the government's number one priority. Don’t bet against China?

While global growth for 2021 was revised slightly lower due to the spread of the Delta variant, the outlook for growth in 2022 has improved, permitting monetary authorities to look at removing life support tools soon.

Investment Outlook

It is good news that monetary authorities no longer believe that extraordinary measures are needed to support their economies. Tapering does not mean that tightening is on the horizon. 2021 will go down as an extraordinary year as we have had to deal with the pandemic, shortages, supply line issues, geopolitical risks and more. Nevertheless, economies recovered substantially only to slow down over the summer due to the outbreak of the Delta variant. But that is changing as the world gets vaccinated.  Better days are ahead.

Investors have not factored into their 2022 projections the positive impacts of ending shortage and supply line issues which ratcheted costs up dramatically in 2021 while also curtailing production/sales. Inventories are at all-time lows everywhere and need to be rebuilt. Infrastructure plans are on the horizon globally on top of significant increases in capital spending and research. All good for growth.

We continue to favor investing in value stocks tied to global economic growth and technology companies riding the wave of digitalization. Companies hurt by shortages and supply-side issues will be the winners next year, too, as these problems abate. Inflation will subside too. We continue to see a steepening yield curve, but it will be held down by large inflows from abroad arbitraging the yield differential.

Getting off life support is a good thing.

[harbourfronttechnologies]

Factor Model for Delta-Hedged Options Returns

Options are contracts that allow traders to buy or sell a security at a predetermined price. Options give the holder the right, but not the obligation, to buy (call option) or sell (put option). They are traded on exchanges like stocks and have their own ticker symbols. Options can be used to hedge against risks and/or speculate on price movements. They offer traders the ability to leverage their capital in order to increase potential returns.

Options are versatile instruments that allow traders to express different views on the market. They can be used to speculate not only on the direction of an asset but also on the degree of movement. Options traders can position themselves to benefit from a volatile or range-bound market, as well as capitalize on news events and corporate announcements. Furthermore, options can be used to create synthetic positions that mimic the effects of owning a security, but without actually having to own it.

Reference [1] examined the returns of delta-hedge options positions by applying a factor model. Traditionally, factor models have been used mainly in the equity market. The article pointed out

Motivated by the theory, we construct new empirical factors based on the following five option characteristics: option illiquidity, option price, the difference between option-implied volatility and realized volatility, the difference between option-implied skewness and realized skewness, and the difference between option-implied kurtosis and realized kurtosis. After constructing the factors, we test if they are explained by existing models and find that established factor models for stock, bond, and option markets can hardly explain our new factors for option returns. Then, we conduct a number of asset pricing tests to evaluate the relative performance of our factor model. The tests demonstrate its superior performance; the average absolute alpha on the test portfolios (constructed with 35 option characteristics and 93 stock characteristics) is significantly reduced by the newly proposed factor model, whereas the existing factor models cannot explain a substantial portion of the realized returns on the long-short portfolios of equity options.

This article highlighted some important points that are not discussed often in the trading community, notably,

Seemingly large options returns are in fact compensation for volatility risk, tail/jump risk, and liquidity risk in the options market.

Delta-hedged options returns are functions of the differences between the physical and risk-neutral moments (volatility, skewness, and kurtosis) as well as option price and option illiquidity.

Let us know what you think in the comments below or in the discussion forum.

References

[1] Bali, Turan G. and Cao, Jie and Chabi-Yo, Fousseni and Song, Linjia and Zhan, Xintong, A Factor Model for Stock Options (2022) https://ssrn.com/abstract=4308916

Article Source Here: Factor Model for Delta-Hedged Options Returns

from Harbourfront Technologies - Feed https://harbourfronts.com/factor-model-delta-hedged-options-returns/

[moneyplanttradingacademy]

How to choose Stock Market Course in Ahmedabad

How to Choose the Best Share Market Training Institute in Ahmedabad ?

There is a number of Stock Market Classes in Ahmedabad, India. In recent years, many youngsters are showing interest in the stock market and are willing to make their careers in the same. The quality of teaching varies from institute to institute and therefore finding a good share market training institute might be tough and confusing.

Consider reviewing the most trusted platforms and comparing them against a specific set of criteria while searching for good Stock Market Course in Ahmedabad. One should consider the criteria like the types of classes they offer, cost of learning, access to a trading community, and access to instructors or mentors while choosing the best stock market training institute in Ahmedabad.

Money Plant Trading Academy is Launching Stock Market Course in Ahmedabad

By looking at and considering the need for the right knowledge of Money Plant Trading Academy has decided to start taking Stock Market Classes in Ahmedabad. Money Plant Trading Academy is one of the popular share market coaching classes in Ahmedabad.

Money Plant Trading Academy is started with the mission of letting people know that with the right knowledge and right guidance one can be a consistently profitable trader in the stock market. Money Plant Trading Academy is planning to open its franchisees all over India. This branch of the stock market training institute in Ahmedabad will be the first franchise of Money Plant Trading Academy.

How Long Does It Take to Learn from any Stock Market Classes in Ahmedabad?

​The duration of learning depends on the individual’s capacity and the pace of learning. Money Plant Trading Academy share market classes in Ahmedabad comprise 30 learning modules and it generally takes 1.5 months to complete. However, Money Plant Trading Academy stock market training institute in Ahmedabad guides its students even after the completion of the course.

But it is always advisable that learners should put their 100% to grasp the things that are being taught in the class. The mode of these classes will be online. The online mode of these Stock Market Classes in Ahmedabad allows learners to learn at a comfortable pace. Some learners might learn delta trading sooner than others while some not. So the speed of learning wholly depends on one’s learning pace. The sooner he/she will learn the sooner he/she will start earning profit.

Who Should Learn from the Share Market Training Institute in Ahmedabad ?

Anyone from Ahmedabad or outside of Ahmedabad interested in making money in the share market can enroll in these share market classes in Ahmedabad. Through these classes, you get to learn the ins and outs of stock trading that you can’t learn in-depth on your own Taking Stock Market Classes in Ahmedabad surely benefit the trader because the curriculum of the stock market training institute in Ahmedabad covers all the concepts of the stock market that are must to know by any trader or investor. Entering the stock market with half-knowledge will cause you losses only. Because half knowledge is always more dangerous than having no knowledge.

What will you learn in Money Plant Trading Academy’s Stock Market Classes in Ahmedabad ?

This course provides a more structured learning path with the opportunity to learn from expert traders and apply your skills and knowledge without risking your money. Money Plant Trading Academy’s share market classes in Ahmedabad help develop discipline and the proper trading mindset, which are critical to successful trading.

You will get live market training on how to execute the strategy. Money Plant Trading Academy’s curriculum cover topics as basic as what is equity derivative to the advanced level such as how to execute the hedging strategy. Money Plant Trading Academy’s courses mainly focus on delta trading and delta hedging as this is the directionless way of trading. That means you get profit in both bull and bear market.

Conclusion

This course provides a more structured learning path with the opportunity to learn from expert traders and apply your skills and knowledge without risking your money. Money Plant Trading Academy’s Stock Market Classes in Ahmedabad help develop discipline and the proper trading mindset, which are critical to successful trading.

You will get live market training on how to execute the strategy. Money Plant Trading Academy’s curriculum cover topics as basic as what is equity derivative to the advanced level such as how to execute the hedging strategy. Money Plant Trading Academy’s courses mainly focus on delta trading and delta hedging as this is the directionless way of trading share market. That means you get profit in both bull and bear market

[zorovevo]

best stocks for options trading 2022 Tennessee Even if you think you've got time on your options.

Table of Contents

best stocks for options trading 2022 Tennessee traders will buy 20 or 30 contracts under the same risk parameters.

home options trading course nitroflare Tennessee I'll explain my reason a little bit later.

trading options explained Tennessee Simply learn and use the basics like MACD, support/resistance, trending channels, divergence/convergence, and moving averages.

oex options trading Tennessee Document and Learn From Your Previous TradesEvery trade is a learning experience.

what is trading options Tennessee 00 (the value of the spread minus the premium collected multiplied by the number of contracts times the multiplier).

books on options trading Tennessee You are bearish on the shares or perhaps the sector that the company is in.

basic options trading Tennessee Successful traders DO NOT make random decisions.

billy williams options trading course Tennessee During periods of high volatility.

best stocks for options trading 2022 Tennessee This increase in premiums allows for the investor to trade the option in the market for a profit.

This also includes knowing everything related to them like expiration dates to where they are found on basic option tables.

Conclusion BasicsTrading Options carries nice leverage because you do not have to buy or short the stock itself, which requires more capital. They carry 100% risk of premiums invested. There is an expiration time frame to take action after you buy options. Trading Options should be done slowly and with stocks you are familiar with. I hope you learned some of the basics of options buy side trading, investing and how to trade them. Look for more of our articles.

Critical Techniques:

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delta options trading Tennessee 1 means One option contract representing 100 shares of PKT.

collecting a premium of $0. 57 or a total $1140 (minus fees and commissions). Their goal is to get out of the position when the premium of the spread reaches $0. 29. in which they would be buying back the spread for a profit of $560. Taking profits at 50% of the premium collected is a great level to exit.

the options course high profit and low stress trading methods Tennessee Learning to trade puts or understanding them starts with market direction and what you have paid for the option.

You see, it's important to have some kind of perspective and understanding of the stock or ETF you're trading.

trading options master course ebook pdf Tennessee Those who bought option premium will see the value of those options lose a lot of value because of the volatility crush.

I size the trade to represent my max risk and play the odds. For example, if I were to put on this trade and was risking $1,000 on the trade. I'd sell 4 call spreads which would have a max risk of $972. I'm not a proponent of stopping out of short premium trades. As you know, most options expire worthless. However, there are cases where outliers occur and short premium trades go ITM and end up being losers. By sizing my trades according to the amount I'm willing to lose. I'm not really stressed about any large overnight moves or morning gaps. You see, I've already outlined my line in the sand. In fact, this is one of the problems that I have noticed with those that use option strategies like iron condors. Now, I'm extremely disciplined about following my rules. I know that if option volatility isn't elevated (or rich). it doesn't make sense to add on more risk (to receive a greater premium) because that's how potentially big losses can occur. Some of my clients achieve a great deal of success after a few weeks of learning my simple rules-based approach. However, when some tell me their profits, relative to their account size. I won't hesitate to let them know if they're taking on too much risk and sizing poorly. Of course, some listen. but others will still size up to big.

risks of options trading Tennessee This means, they have a strategy to get into a trade, make adjustments, and exit positions based on SPECIFIC events.

This article will focus on stock options vs. foreign currencies, bonds or other securities you can trade options on. This piece will mostly focus on the buy side on the market and the trading strategies used. What is a Stock OptionAn option is the right to buy or sell a stock at the strike price. Each contract on a stock will have an expiration month, a strike price and a premium - which is the cost to buy or short the option. If the contract is not exercised before the option expires, you will lose your money invested in your trading account from that contract. It is important to learn that these instruments are riskier than owning the stocks themselves, because unlike actual shares of stock, options have a time limit. There are 2 types of contracts. Calls and Puts and How to trade them and the basics behind them. What is a Call Option and how to trade them?A call option contract gives the holder the right to buy 100 shares of the stock (per contract) at the fixed strike price, which does not change, regardless of the actual market price of the stock. An example of a call option contract would be:1 PKT Dec 40 Call with a premium of $500.

best online course for options trading Tennessee After a few trades, you'll begin to recognize key characteristics to why some trades win and why some trades lose.

Learn all the ins and outs of your practice by back-testing historical data, testing current conditions using paper trades, and reading about your favorite trade in books.

simple options trading for beginners Tennessee You see, I've already outlined my line in the sand.

43 x 20 = $48. 60 x the multiplier of 100 shares = $4,860However, the option investor is only willing to risk $1,000 on the position on a $50,000 portfolio. They will buy back the spread for a loss if it gets close to $1. 05. On 7/31/14, the UVXY exploded. moving up more than 16% and closed at $31. 70. The investor felt that this was a good time to sell some premium as the UVXY has a history of sharp moves up followed by sharp declines. Well, on 8/1/14, UVXY continued to climb higher as fears escalated both geopolitically and within the US equity market. It finished the day up nearly 10% and closed at $34. 73. The value of the spread closed at $0. 93. Although the investor was looking at a paper loss of $720, they decided to get out of the position. if UVXY gapped up on the following Monday, it would probably get past the amount they were willing to lose. (Note: UVXY is a product I wouldn't personally sell call spreads on.

options trading forum Tennessee I know that if option volatility isn't elevated (or rich).

10 expiring in an hour. those options that I bought back ended up closing deep ITM. Again, near-term options have the potential from being deep OTM to deep ITM very quickly (and vice-versa). Position sizing is critical for near term options. it doesn't matter if you're buying or selling premium. In many cases, if I do buy premium on an option expiring in a short time frame.

Key Concepts:

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[billehrman]

Stay Long and Diversified

Stay Long and Diversified

The financial markets will remain in a holding pattern at elevated levels until they gain more clarity on the impact on global growth from the coronavirus delta variant and the future direction of monetary and fiscal policies.

The simple truth is that equities are the only game in town with interest rates so low and liquidity so high. Remember the axiom "Don't fight the Fed?" The Fed not only has our backs but also wants the economy to run hot. The stock market has rarely been so undervalued using Buffett's time-tested tool comparing 10-year bond yields, currently 1.31%, to the inverse of earnings yield, now 4.7%. We continue to emphasize investments in economically sensitive companies. We see above-average growth and returns for many years to come bolstered by a global recovery; the need to build additional capacity closer to home; the move to EV, going green and new technologies; and several government-sponsored infrastructure programs. In addition, we also own some of the great technology companies selling at reasonable valuations as we have indeed entered a new tech revolution in which all companies must spend to remain competitive. Earnings season has begun with a bang, with over 90% of the companies beating forecasts and raising future numbers. We are also paying close attention to balance sheets which have never been stronger. We expect to see significant increases in dividends and buybacks over the next year, which will support higher stock prices.

Getting vaccinated is the best protection against getting the coronavirus delta variant. More than 3.54 billion doses have been administered across 180 countries at a current run rate of approximately 31 million doses per day. In the U.S, 336 million doses have been given so far at a current rate of about 530,000 doses per day. Both the Moderna and Pfizer vaccines are effective against the variant, which is excellent news. Still, production must be ramped up even faster than current targets. The FDA must change the label from experimental to fully approved, which will alleviate some safety concerns. While the need for a booster shot has not been settled, we see billions of doses available next year to handle all needs such that we still see a global recovery beginning before next spring and lasting for several years.

Fed Chairman Powell was on the Hill last week giving his semiannual testimony to the Senate and House. He reiterated his view that the U.S economy has not improved enough to begin scaling back the central bank's monthly asset purchases while adding that inflation is likely to run high in the coming months before moderating.  He commented on production bottlenecks and other supply constraints as the principal cause of rapid price increases for some goods and services. He also downplayed any risks to the economy from higher asset prices. He continues to expect inflation to moderate over time and return to the Fed range around 2%. We agree as  most CPI increase was due to new and used autos, car rentals, hotels, and airfare. Used car prices have begun to cool. The CPI, excluding these areas, was up only around 2%.

The Fed Beige Book was released last week too and confirmed "moderate to robust growth," supply-side disruptions, increased bank lending, slight to moderate job gains, wage hikes at a moderate pace, labor shortages, and pricing pressures. We continue to expect the Fed to announce that they will begin tapering early in 2022, starting with reduced mortgage bond-buying, complete tapering by the end of 2022, and hike the federal funds rate by 0.25% in the first half of 2023. The bottom line is that the Fed will remain overly accommodative for several more years keeping real rates negative.

The Senate Democrats agreed to a $3.5 trillion top-line spending bill that includes most of Biden's social infrastructure agenda down from an initial level of $6 trillion pushed by the progressive Democrats. The agreement consists of Medicare expansion and excludes the bipartisan $579 trillion infrastructure bill. We need to see the spending and tax details before commenting but consider this bill overreaching from the progressives that will haunt them in next year's election, especially if inflation remains elevated. The market still has not embraced that a traditional infrastructure bill will be passed, which we consider a mistake. By the way, child tax credit checks have begun to go out this week. It will cost us about $100 billion and clearly will boost back-to-school sales this fall.

The domestic economy continues to roll along: industrial production increased 0.4% in June and capacity utilization rose to 75.4; jobless claims fell to a pandemic low of 360,000; import prices rose 1.0% while export prices increased 1.2%; July Empire State activity index rose to 43 while new orders hit 33.2 and shipments 43.8; inflation expectations hit a new high of 4.8%; consumer loans were substantial; the June CPI index increased 0.9% with the core up the same(read earlier comments about the CPI); the budget gap ballooned to $2.24 trillion for the first nine months down from 2020 pandemic levels; the PPI price index for final demand increased 1% in June; business inflation expectations fell 2.8% in July, and June retail sales jumped a surprisingly 0.6% with core retail sales up 1.3%. And all of this is before the child credit checks and additional fiscal stimulus.

China's second-quarter economic data was more robust than anticipated growing 7.9% from a year ago, led by strong retail sales and industrial production. The World Bank now thinks that China's economy will grow by over 8.5% In 2021. China's June imports and exports also came in well above expectations resulting in a trade surplus of $51.5 billion. And all of this has occurred before the Bank of China's easing policy last week  to  further stimulate growth.

We expect the ECB to change its policy guidance at its next meeting to accept inflation higher than its 2% goal, just like the Fed. Finally, Japan just lowered its growth forecast for the year due to high levels of coronavirus.

The U.S, Eurozone, and China will be engines of global growth in 2021, but we still expect the rest of the world to kick in next year as they get their arms around the coronavirus.

Investment Conclusions

We expect stock markets to move higher over the next year, driven by much higher earnings, dividends, and stock buybacks supported by accommodative fiscal and monetary policies. While we still favor the economically sensitive areas as we see many years of higher than historical growth rates supported by catch up capital spending, the need to shorten supply lines, and multi-year government-backed infrastructure spending bills, we have also added many technology companies as we have entered a multi-year technological revolution. Naturally, we have many special situations and own no bonds as we still expect the yield curve to steepen over time.

[autoaddickt]

Auto mobiles  And Motor-Sports;                           The Formula One :

The Introduction of Cars:

Do you like cars? Cars are the four wheeled auto mobiles which enable us the facility of travelling from one place to another in a faster manner than the old days. As you all know during old days, people took a lot more time to travel from one place to another. You know why it happened. It is because of the lack of developed technology for an easier, much faster and efficient transportation of people and goods. As human beings improved their views and shaped up their technological innovations, they discovered the wheels which is as you all know in the shape of a circle. Gradually they invented Cars, the four wheeled vehicles. Cars came into the global use during the 20th century. More specifically, Cars came into use during the year 1886 when Carl Benz introduced the first four wheeled vehicle. The car which was introduced by Carl Benz was the Benz Patent-Motorwagen. Cars became widely available in the early 20th century. But most of the cars during that time were not accessible for the public due to their ingenuity and unawareness. The first cars accessible to the masses was the 1908 Model T, an American car manufactured by the Ford Motor Company. Cars were rapidly adopted in the US, where they replaced animal-drawn carriages and carts, but took much longer to be accepted in Western Europe and other parts of the world. Gradually cars became common on the streets. And this demand for cars gave the auto mobile manufacturers new challenge to bring some kind of new elements into their cars. As you all know, now a days cars have many facilities like AC, Multimedia system, parking sensors and so on.. Cars even have autonomous systems using artificial intelligence in which the car drives by itself using AI.

The Introduction Of Motor Sports:

As the usual sports events motor sports is the sports event using motor vehicles that is cars and bikes. In the event of car racing the competitors race from one starting point to a finishing point. The winner of the game is the ones with the lowest time taken to finish the race. In the case of four wheeled motor sports, the item is globally governed by the Fédération Internationale de l'Automobile (FIA). The history of motor sport is from 1894 when a French newspaper organised a race from Paris to Rouen and back, starting city to city racing. In 1900, the Gordon Bennett Cup was established. But gradually the closed circuit racing transformed to greater times and racing in public roads were banned.

Aspendale Racecourse in Australia in 1906 was the first dedicated motor racing track in the world. Thereafter more and more racing events became popular and different types of racing Grand Prix and championships came into being.

Different Types Of Racing sports:

Racing sports are of many types. And each types of racing are just as better as each other and are celebrated grandly by the racing manias (including me). Each racing events pumps dopamine and adrenaline to the nerves of racing hearted people, as their super heroes showcase their talent on the racing track. These racing events are thoroughly enjoyed by both the competitors and audience.

Different types of Racing Events are:

The Formula Racing:

The Formula One

The Formula E

Indy Car Series 

The Dakar Rally

There are many other racing series like stock car, sports car, touring car and off road or Rally racing. Now Here we discuss about the formula one.

The Formula One or F1

As you all Know the first and the most popular racing sport is the Formula One (also known as Formula 1 or F1) is the highest class of international auto racing for single-seater racing cars sanctioned by the Fédération Internationale de l'Automobile (FIA). The series is owned by Liberty Media, an American mass media company controlled by its founder and chairman John C. Malone, through its wholly owned subsidiary, the Formula One Group. The World Drivers' Championship, which became the FIA Formula One World Championship in 1981, has been one of the premier forms of racing around the world since its inaugural season in 1950.The word "formula" in the name refers to the set of rules to which all participants' cars must conform in order to participate in the game. A Formula One season consists of a series of races, known as Grands Prix. The word Grand Prix is the native of France which means ‘great or grand prices’.These GP races take place on the closed F1 circuits  all over the world. The cars used in the race are the fastest regulated road-course racing cars in the world, owing to very high cornering speeds achieved through the generation of large amounts of aerodynamic downforce. But in the year 2017 the cars underwent major changes,

allowing wider front and rear wings, and wider tyres resulting in peak cornering forces and top speeds of up to approximately 350km/h (215mph).  As of 2019 the hybrid engines are limited in performance to a maximum of 15,000 rpm; the cars are very dependent on electronics and aerodynamics, suspension and tyres. Traction control and other driving aids have been banned since 2008. You should never think that arranging and managing this mega grand event is cheap, With the annual cost of running a mid-tier team—designing, building, and maintaining cars, pay, transport—being US$120 million, its financial and political battles are widely reported. Its high profile and popularity have created a major merchandising environment, which has resulted in large investments from sponsors. On 23 January 2017 Liberty Media confirmed the completion of the acquisition of Delta Topco, the company that controls Formula One, from private-equity firm CVC Capital Partners for $8 billion, and the coordinators and other workers including everyone who contribute their part including the audience who gets to the gallery to support their star plays an important part in the success of the game.

Point system in F1

Coming to the point system in the race F1 there are separate points for the constructors (the companies who make cars for their own drivers) and the drivers of companies in which they race for. The rules for getting specific points is that A driver must finish within the top ten to receive a point for setting the fastest lap of the race. In the event that the driver who set the fastest lap finishes outside of the top ten then the point for fastest lap will not be awarded for that race.

The point table is given below:

          1st 2nd 3rd 4th 5th 6th 7th 8th 9th 10th FL*

25  18   15  12   10  8    6    4    2    1      1

(*FL means Fastest Lap)

       The current table top of this season 2020 is Lewis Hamilton with 205 points and he is racing for Mercedes Benz, the German automotive company.

The Drivers point table* is given below:

The constructors point table* is given here:

(*the values of the points may change by the next race)

And here I conclude my article and hope You enjoyed the ride to it.

          ❖★❖★ Drive safe! Ride Happy! Dare 2 Dream!! ❖★❖★

[magistralconsulting]

Hedge Fund Operations Outsourcing: How does it work?

Introduction to Hedge Fund Outsourcing

Operations Outsourcing for Hedge Funds is slowly becoming a viable proposition to improve analytical excellence and reduce the operations’ cost. Almost all types of hedge funds can benefit from outsourcing and research support services. It aids the smooth functioning of Hedge Fund operations. Hedge Fund outsourcing not only helps in reducing operations cost, but it is also immensely helpful in raising the analytical standards of the fund.

Hedge Funds are investment vehicles that invest in stocks to give superlative returns to their investors. They follow multiple strategies like long-short equity, market neutral, merger arbitrage, convertible arbitrage, event-driven, credit, fixed income arbitrage, global macro, Short only, and Quantitative. Here is what these strategies are and what could be outsourced by each strategy

Long-Short Equity Hedge Fund

This is by far the most common form of Hedge Funds. Here the fund manager takes long and short positions on the stocks where he believes the stock will go up and the stock will go down respectively. Ideally, long positions should match short positions, so that risk from overall market movements is hedged. However, in practice, the ratio of long and short positions varies with every fund manager. Generally, there are more long positions than short ones. Taking long positions on expected winners acts as collateral to short positions in the expected losers

Long-short Equity is an extension of pairs trading, where a fund manager takes opposing positions in similar stocks in the same industry. If a stock looks overvalued as compared to another in the same industry, the fund manager goes short on the overvalued stock and long on the undervalued one. This relative positioning hedges the risks of market fluctuations in either direction

Hedge Fund outsourcing in long-short equity funds have reduced operations cost by 40-70% and at the same time is known to bring the new skills to the fold of the fund.

What could be Outsourced

Here is what could be outsourced conveniently in a Long-Short Equity Hedge Fund

-Equity Research

-Middle Office

-Fund Administration and Accounting

-Data Management (Collection, Cleansing, Automating and Templatizing for Insights)

-Industry Research

Market Neutral Hedge Funds

Market neutral hedge funds are long-short equity funds that hedge the value of long and short positions. The value and volume of long positions match the value and volume of short positions. This ensures that the risks of market movement are minimized. That also means that the returns from such hedge funds are far moderated than the funds that are biased towards long positions. As its type of a long-short equity fund, outsourcing carries similar potential.

Here is what could be outsourced conveniently in a Market Neutral Hedge Fund

-Equity Research

-Middle Office

-Fund Administration and Accounting

-Data Management (Collection, Cleansing, Automating and Templatizing for Insights)

-Industry Research

Merger Arbitrage Hedge Funds

This is a unique kind of event-driven hedge funds that play on a merger event. Whenever a merger event is announced, the fund manager buys the shares in the target company and shorts the shares of the acquiring company in the prescribed share swap ratio. It creates a spread that incentivizes the fund if the merger goes through. This is however a risky proposition and fund loses in case the merger does not go through due to any regulatory or internal reasons

Apart from usual activities, here is what could be outsourced:

-News tracking related to M&A

-Merger Modeling

-Valuations

-Industry Reports

Convertible Arbitrage Hedge Funds

Convertible Arbitrage is securities that combine bonds and equity. Fund Managers are usually long on bonds and short on the equity that they convert to. Fund managers maintain a delta neutral position throughout. So if the equity value goes down, they need to buy more equity and hedge more if the stock price goes up. It forces fund managers to buy low and sell high. These funds return superior performance if there is volatility in the market.

There are multiple facets of operations that could be outsourced here

Event-Driven and Credit Hedge Funds

This is another unique type of hedge fund that thrives on special situations like bankruptcy. These funds focus on acquiring senior debt that gets paid over other kinds of debts in case of bankruptcy. Credit Hedge Fund on the other hand looks for arbitrage between senior and junior debt from the same issuer. They also trade between securities of different qualities from different issuers

Apart from regular operational aspects, here is what could be outsourced here

-Research around the events that allow the opportunity to kick in for the Hedge Fund

Fixed Income Arbitrage Hedge Funds

These Hedge Funds buy securities on one market and sell them on another market and make money from the arbitrage existing between the two market prices of the securities

Global Macro based Hedge Funds

Some Hedge Fund focus on macro trends around countries, markets, commodities, trades, etc. to bet on different investment and trade from opportunities that these macro changes may throw-in

Global macro changes research could be outsourced here

Short Only Hedge Funds

These Hedge Funds bet on the failure of a company. They look for companies that may have unsustainable business models and go short on them. It’s the short part of the Long-Short Equity Hedge Fund.

All the elements of the Long-Short Hedge Fund could be outsourced.

Quantitative Hedge Funds

Quant based Hedge Funds solely depend on mathematical models to make buy or sell decisions. Their algorithms are obscure and they use tools like Machine Learning, Artificial Intelligence, High-Frequency Trading, and other technological tools to produce returns.

All regular activities related to Hedge Funds like Administration could be outsourced here.

Here are the activities that Hedge Funds commonly outsource:

Activities that are commonly outsourced by Hedge Funds

Equity Research Outsourcing/ Hedge Fund Outsourcing

Equity Research Outsourcing is by far the most important element of Hedge Fund Outsourcing. Equity Research outsourcing helps the in-house team track more stocks and sometimes to give more depth to the same set of stocks that are tracked by the fund. Fundamental and technical equity research, both could be outsourced effectively.  DCF models are prepared for each stock and then tracked progressively for any changes or news related to that particular stock. Earnings call transcripts are duly recorded and analyzed for a recommendation. A short 2-3-page report is prepared for every stock with the overall recommendation and the rationale for the recommendations. Hedge Fund Research tasks are completed seamlessly with the offshore team acting as a natural extension to the in-house team

Markets/Industry Research

If an investment theme is weaved around a specific country, industry or an emerging theme, its imperative to track that industry, market, or theme closely and regularly. A market is tracked for any macro-level changes like new tech, change in regulations, key movements, trends, etc periodically say quarterly. Several indices are also tracked regarding this. It’s quite common to track 14 S&P industries or some of its components therein. For index hedge funds, the performance of various indices is tracked

Typical examples may be tracking the insurance market in North Africa or metals and mining in South America. If your fund has a bigger interest in stocks that are based in those markets, it makes sense to have the key metrics of these industries reported to you regularly

Manager Research

This is important for Fund of Funds. As part of their investment strategy, they are continuously on a look-out for hedge funds that fulfill a given set of criteria like vintage, past returns, investment themes, etc. Each fund is analyzed for risk-adjusted returns over a fairly long period like 10 years or so to find out the most suitable funds.

This requires getting in touch with multiple funds across the globe, collecting information, analyzing it, and then presenting holistic recommendations on where the fund stands. All of this could be outsourced.

Bond and Other Fixed Income Instruments Research

For hedge funds that operate on the lines of fixed income, the research is done that is related to sovereign and government bonds, corporate bonds, fixed income instruments, and several other investment options like that

Fund Administration and Accounting

Fund Administration is outsourced for activities related to accounting, bookkeeping, and general administration of the funds. This also forms part of Hedge Fund Middle Office Outsourcing. Some bookkeeping aspects also come under Hedge Funds’ back-office outsourcing. It keeps the documentation trail of all the trades, makes sure all operational processes are followed and exceptions are duly approved. Hedge Fund books are maintained in the prescribed format. It also takes care of investor communications like portfolio allocations, portfolio valuation, capital calls, taxes, profits, fees, NAV, portfolio, etc. Customized Hedge Fund newsletters for investors is sometimes prepared and sent separately to current and potential investors

Investor Relations

This is a subset of the Fund Administration process. However, some elements of organic investors’ reach out could be outsourced as well. A tool or a portal for all the investors with all relevant information for them is prepared for seamless and updated communication. This is communication related to the Hedge Fund investments made by the investors. This might be customized to carry Hedge Fund news, Strategy, Returns, and Performance. In the case of Fund of Funds, the performance of all the underlying funds is covered.

About Magistral

Magistral has helped multiple hedge funds in outsourcing operations. You can check www.magistralconsulting.com for more details

About the Author

The Author, Prabhash Choudhary is the CEO of Magistral Consulting and can be reached at Prabhash.choudhary@magistralconsulting.com for queries on this article or business inquiries in general