Stocks, Stock Swings, Options, and Option Trades

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All Posts Term: Technology
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Technology

## How to Calculate Option Profit

Calculating option profit is defined by the sum the investor earns when purchasing a call option or selling a mature option. In other words, if you have entered a call option agreement, you expect the asset's underlying price to be higher than the strike price, on maturity. The income for the investor will derive from having the right to buy the underlying asset at the strike price, and later sell at market price.

HOW TO CALCULATE OPTION PROFIT

EXAMPLE

Fred owns 100 shares in a Detergent manufacturing company, they currently trade at \$55. Fred expects the price of the stock to go up, as everyone needs detergent and the company is achieving excellent results in the recent quarter. Fred buys a call option at a strike of \$50, expecting the stock to rise considerably before maturity, and pays \$200 for 100 shares at \$2 each.

When the stock price rises to \$65, Fred can exercise his option call and buy 100 detergent shares for \$50, and then sell them on the open market for \$65 thus realizing a profit.

STOCK ANALYSIS

Analyzing stock is important in preventing loss, however, how to calculate option profit is probably more important.

When a trader buys a call option, he realizes that he can suffer a loss from the trade. So he waits until the value of the asset reaches the strike price and then he exercises the trade. Knowing when to sell an option, is when you earn the profits. When he does not choose to exercise his right he won't get reimbursed the premium paid when buying a contract. The amount of the premium fluctuates depending on the risk and time left before the option expires. If the underlying asset price is less than the strike price when the option expires, the call option writer makes a profit.

HOW TO CALCULATE LONG CALL OPTION PROFIT

When purchasing a long call option you expect the underlying asset price to rise above the strike price before it expires. The profit percentage is hard to predict and calculate, as long as it does rise there is no limit as to how high it will go before expiration. However, you will get an idea of how much you can earn. To get a more exact idea you need to consider various factors and they are:

* Breakeven point
* Strike Price
* Profit

If your prediction is wrong and the stock price falls your call option will be worthless, and you will suffer a loss. When we start trading we need to be prepared to sustain a few shocks.

You also have to pay brokerage on the trade to your broker, and the cost varies. Open a Demat account with a reliable broker or stockbroker and that will provide you with some structure through brokerage plans.

Technology

## The Truth About Truth Social Stock

Social media platforms may be full of family photos and internet memes, but today's social media platforms also display plenty of friendly and not-so-friendly political discussions. One recent addition to social media has been Truth Social. Truth Social brands itself as a "'Big Tent' social media platform" that purports to promote "discussions without discriminating based on political ideology." (3)

## Trump Media and Technology

Media watchers know that Truth Social was founded by former President Donald Trump and launched by his company, Trump Media & Technology (TMT), in February 2021. B Since the middle of 2022, Truth Social has been facing "financial and regulatory issues." (4)

Although the former President admitted he knew it would be challenging to launch a social media platform large enough to compete with Facebook or Twitter, he remains intent on raising over one million dollars (the amount allegedly needed to keep the platform running). (1) Having been banned from Twitter, the former President has used Truth Social as his media outlet for communicating with his followers. (2)

## Digital World Acquisition Company

When securing a place for Truth Social on the stock market, TMT decided to opt for a SPAC (Special Purpose Acquisition Company - also called a "shell company) merger with Digital World Acquisition Company (DWAC) which was already listed on the NASDAQ stock index. (4)

The merger (announced in October 2021) was initially met with approval by DWAC stockholders, and DWAC stock rose in value. However, recent inquiries about TMT by the SEC have postponed the completion of the stock offering. During the SEC's investigation into the merger, they determined they needed more information about TMT. The SEC served subpoenas on TMT, but some TMT board members' responses have been delayed because they are involved in giving information to a grand jury for other legal issues. (1)

## DWAC Stock Price

DWAC is concerned by the delay because SPAC transactions have a specific timeline. If the timeline cannot be met, DWAC has protested this will prevent the merger's stock listing. DWAC is also upset because SEC has now sent subpoenas to their board members about their communication methods. Executives from DWAC have assured their stockholders they are cooperating with the SEC, but DWAC stock has reportedly now fallen 72% (2) due to SEC inquiries. This stock decrease has reportedly resulted in "a financial loss of 6.5 million dollars to DWAC during the first half of 2022." (1,2)

DWAC has been attempting to get its stockholders' approval to request an extension to the deadline. If the merger's current deadline becomes too close without the needed signatures, Trump Media could infuse DWAC with more money to secure the extension. If this extension works, it will push the deadline forward by three months. If that deadline nears its end, Trump Media could provide more funds to repeat the process. There is a possibility DWAC may withdraw from the merger, but when questioned about this possibility, Trump did not show concern, as he feels certain another company will emerge to provide Truth Social with a stock presence. Despite the ongoing legal challenges by the SEC, TMT may still find another company to merge with. Assistant Law Professor Michael Ohlrogge from NYU has stated the merger could still be completed as long as the potential legal risks are fully disclosed to the other company’s stockholders. (1)

Technology

## Honda Motor Company, LG Energy Solution Announce Planned U.S. EV Plant

On Aug. 29, American Honda Motor Company and South Korean battery maker LG Energy Solution Ltd. announced that they have gotten together on a plan to build a factory to produce lithium-ion batteries for Honda and Acura electric vehicles. The factory is projected to cost \$4.4 billion. Construction is slated to begin early next year, and the plant is projected to start producing batteries by the end of 2025, with a proposed manufacturing goal of 700,000 batteries producing a total output capacity of 40 gigawatt-hours annually. Whatever state is chosen for the plant’s location, Honda Motors officials assert that the plant will benefit Honda plants throughout the country.

## EV Honda Products

Honda has recently been behind some of its competitors in producing electric vehicles, although it offers hybrid CR-Vs and Accords. The company plans to unveil a fully electric SUV named Prologue, in development with General Motors, in the near future. Batteries produced at the new plant would be used in Honda and Acura EV offerings. This factory is part of a plan to achieve carbon neutrality for Honda with a goal set for 2050. Honda had already announced a target of 30 EV models worldwide with a production goal of two million Evs annually by 2030.

## New Ohio Honda Plant

Plans for the plant’s location have not been finalized, but one of the considered sites is Ohio, which already hosts Honda’s main U.S. factory. Ohio Gov. Mike DeWine said in a statement that Ohio is working with Honda and LG on the matter. He expressed hope that the factory would be located in his state. Honda Motor Co. currently employs 15,000 people in the state including an Anna engine plant, an assembly plant in Marysville, and a new Transportation Research Center outside Marysville containing one of the most advanced wind tunnels in the world.

## GM Working with LG Too

This follows an announcement last month by the U.S. Department of Energy that a conditional loan of \$2.5 billion has been approved for General Motors to also pair with LG Energy Solution in aiding their joint venture, Ultium Cells, to build three lithium-ion battery factories in the U.S. The plants will support GM’s goal of producing a million Evs annually by 2025. These factories are planned for Michigan, Tennessee and Ohio. Ford Motor Co. has teamed with SK Innovation to also produce batteries in Kentucky. Other companies, including Toyota, Volkswagen and Stellantis also plan battery plants in the U.S.

Market NewsTechnology

## Pro Music Rights Goes Public

Music is a universal language that transcends boundaries and draws together people of all cultures. When musicians collaborate on compositions they share the magic of sound and song as an embodiment of human expression. With such a deep sentimentality involved with music, many artists have found it hard to turn down lucrative offers from big companies for their songs. However, with recent changes in copyright laws, this may be changing.

In what might be the most exciting news for indie artists in recent memory, Pro Music Rights has gone public. This is huge for competition in the industry, and big news for artists everywhere looking to get paid.

## Pro Music Rights Goes Public: What Does This Mean?

This means that any independent artist who wants to sell their music rights as a business can now do so. And it's not just about getting your song on iTunes or Spotify; it's about earning royalties, keeping control of your work, and marketing yourself. We're living in an era where music is going digital and everyone has access to production software at no additional cost.

## Who Was Involved In The Reverse Merger?:

The reverse merger was between Pro Music and a shell company called Nuvus Gro Corp. (a company incorporated in the United States that was created through the reverse merger of two other Canadian companies). Pro Music issued shares to Nuvus Gro Corp. shareholders and became the "public" part of the entity, whereas Nuvus Gro Corp became the "private" part.

The most controversial aspect of the transaction relates to who actually owns the Pro Music Rights.

Pro Music Rights has been owned by a Swiss corporation (NMCG SA). However, this company is "located" in Switzerland, but it does not currently have an office there. Records available at public record offices in Geneva show no evidence of any Swiss corporation existing under that name at all.

## What Is The New Company Like, What Services Do They Offer?:

Pro Music Rights is a passionate, purpose-driven business with no affiliation with any major record label. Our vision as artists and entrepreneurs is to give you control over your intellectual property and create value for our artists through licensing their music.

We are a young company, but what separates us from many other companies out there is that we have the ability to adapt quickly and make sure that the entire process from start to finish is truly beneficial for our artists.

We are currently working on building out our technology platform for publishing rights and international streaming royalties. This will enable us to move forward with licensing deals and marketing campaigns to bring more artists on board.

Our company represents a unique value proposition for artists and music fans alike because we are currently the only company that has made the transition from being a business exclusively focused on the publishing rights of music, to a fully integrated content creation and distribution platform.

## Is The Stock A Good Buy?

The new business model seems to be paying off. The company's shares were up 44% in their first three days of trading, closing at \$1.25 on NYSE on Thursday, February 5th. With Pro Music Rights now public, many industry insiders are excited about the company's future prospects.

Technology

## Options Profit Calculators Review

This is an online tool that lets you know how much you would make using options. It also provides historical returns from both real markets as well as simulated stocks. Options profit calculator also has a risk level which will let users know how many days they need to hold options before they are able to break even with their investment. There are many advantages of this tool including that it is free, easy to use, and it doesn't require any complicated setup or software installation in order to work properly.

## COMPARE THE TOP THREE OPTIONS PROFIT CALCULATOR TOOLS ONLINE?

1. Options Profit Calculator – Free, interesting stats and graphs, access to historical portfolio performance.

2. ActiveProfitCalculator – Has more options and selections, and can be used for a date range, stocks, and variables.

3. Profit Calculator – Only uses current stock price and return on investment to calculate profit.

There are many more options and calculator tools online that will assist in helping you decide how much you would make on your investment. The only thing to watch for is finding the tool that accurately reflects your expectations within the time period required by you.

## HOW TO USE THE CALCULATOR TOOLS ONLINE?:

1. Use the option profit calculator to find out how much profit you will make.

2. Compare the simulated stock portfolio against real stocks and see which one is more profitable, rewarding, and lucrative.

3. Review the historical performance of both simulated stock portfolios to see how they were able to perform during major market trends such as recession or heavy inflation.

If you are considering making an investment in any stock or options trading then it is important to know how much money you stand to make on your investment. In order to do this, you will need to utilize options profit calculator tools online that will allow you to accurately calculate how much you would make on your investment.

There are many options and calculator tools online to choose from in order to find the one that best fits your requirements and style of investment. You can also use these tools for searching for potential stocks or for estimating how much money you might make if a certain amount of money is invested in a certain stock.

## WHAT THEY CALCULATE FOR YOU:

1. How much is profit for one option contract

2. The risk for the investment.

2. What amount of time is needed to break even on your investment if you choose to sell now?

3. Returns from simulated portfolios of stocks as well as from real markets and stocks that went up or down during their respective years of trading.

4. There are also tools and resources available that will allow you to select which stock or options trading will be most profitable when compared to other market trends such as recession or inflation.

## COSTS, BEST FEATURES, NEEDS:

This calculator is completely free to use and download, with no software required to get it working.

The risk level is the highest setting available, so users should be aware that if they had a 100% allocation of their portfolio on stocks, that single dollar would have a great deal of risk due to volatility. The other levels are low, medium, and high option profit calculator risk. The low-option risk calculator is best used for the beginning investor who only wants to use cash for trading. The medium option risk calculator is for the average trader who has a portfolio that is quite well balanced, and the high option risk calculator is for highly experienced investors and traders as they will have a portfolio that has no allocation of cash from stocks because all of their investments are invested in one stock or another.

Simulation results for both the stocks and the options will be clearly displayed so that you are able to review how the different variables and details were able to work out during different market trends such as recession or inflation.

The historical performance of simulated portfolios will show how certain stocks or options traded during specific trading years were able to perform, as well as how well each portfolio did overall within its respective year.

The simulated stock portfolios are based on real stocks and their respective returns, as long as they are publicly traded, and can all be used online for free. In order to use the simulated stock portfolios, you will need to sign up for a free membership in the Options Profit Calculator, and then you will be able to input your portfolio allocation so that it is calculated against the various simulated portfolios.

Market NewsTechnology

## Upcoming Reverse Mergers

ML is the abbreviation for a reverse merger, but not all mergers are created equal. Reverse mergers, or RMs, allow exchanges to pursue increases in market capitalization without a concurrent share price increase. Although they are becoming increasingly popular, they’re still only accessible to sophisticated investors who have long-term investing goals in mind like generating capital appreciation and diversifying risk exposure across asset classes with minimum volatility.

## How Do Reverse Mergers Work

Upcoming Reverse Mergers involve a private company issuing new common stock (or preferred shares) in exchange for publicly traded securities of another company. Companies conducting RMs can be smaller penny stocks, small cap names with fewer than \$100 million in market capitalization, or even large cap companies looking to go private. This is opposed to “traditional” mergers, where two public entities merge into one.

In order to take advantage of RMs, investors need to be able to identify potential targets. This is typically done through technical analysis and due diligence, since a company’s past and future earnings will directly impact its stock price. However, the recent rally in large cap equities has made it easier for investors not familiar with specific companies to perform an evaluation.

Once a potential target is identified, investors need to assess whether it’s a good fit for their portfolio and a logical partner in their investment thesis. Once again, the recent rally has made this an easier process – sometimes companies will jump 20 to 30 percent in the days preceding an RMs announcement.

A few things need to be pointed out before jumping into a market capitalization increase via reverse merger. First and foremost, you need to make sure that your investment thesis makes sense in light of recent market activity. Not every reverse merger is going to work out well. For example, one company recently announced that their RMs were unsuccessful simply because their target company was not worth the risk they were taking on.

Shifting from the short-term trading mentality to a long-term investment view is also important. A company’s prospects for success and revenues for the next 5 years will determine its intrinsic value, which must be evaluated against trading multiples in order to determine a fair price. However, it’s important to realize that this is not always the case, and that there are many variables at play when determining fair value.

## Investing in Reverse Mergers

One thing you cannot ignore is market psychology. When you are looking to buy a stock as an investment vehicle, it’s useful to understand the psychology of the market. Money flows into markets in anticipation of changes in things like earnings or dividends. This only intensifies the magnitude of the reaction when those earnings or dividends are announced. In other words, after manipulation by money flows, the stock price will often rise significantly more than it would have otherwise.

When you are looking for a company to target, you’re looking for a company that has strong fundamentals; one that looks like it would be attractive to most investors. For example, high growth companies in hot sectors will attract money flows that could push the stock higher due to appreciation in intrinsic value.

Market NewsTechnology

## What is Stockstotrade Pro

Stockstotrade Pro is a trading course designed to help you make money in today's markets. The course features video lessons and live webinars with educational content covering simple low-priced stocks, short selling and option trading. StockStotrade Pro is your one stop solution for managing, trading and educating yourself on stocks. This highly customisable software provides you with all the necessary tools to trade more effectively in just minutes of setup.

You can be a Pro trader with Stockstotrade. You get all the training, systems and tools you need to trade profitably. Don't just learn theory. Get real-world, practical hands-on training that's been proven to work in the markets.

## Benefits of Trading For a Living

When you want to make money, you want it now. And while trading stocks isn’t a get-rich-quick scheme, it does offer some wonderful side benefits — freedom of schedule is one of them. By allowing you to be anywhere in the world with internet access and a laptop, trading lets you work when and where you want. An investor’s freedom of scheduling and location is one of the many benefits of trading stocks.

Your life won’t stay the same as it is today. Life is too fast moving and exciting for stagnation to be a possibility, but if you don’t take any action to change things you’ll just go farther down the same road. Moving slow and steady though? You can get anywhere with that, especially if you set small goals and make them part of your daily routine.

The Stockstotrade Pro course is a step-by-step guide to developing and progressing as a trader. It includes 7 detailed modules, each one focusing on a different aspect of trading. There are over 5 hours of video content to watch, and checklists for you to use alongside the videos - so that you can keep track of what you've learnt. Although this is not the easiest path you'll ever follow, it can be one of the most rewarding. And if you really want it, and are willing to apply yourself then it will make all the difference in your life.

Market NewsTechnology

## Amazon Stock Drags Down Shopify

Amazon’s disappointing earnings reports dragged shares of Wayfair, Shopify, and eBay lower Tuesday morning. Retail e-commerce stocks were tumbling Friday as Amazon’s weaker-than-expected first-quarter results signaled a slowdown in the tech giant’s online store business.

Wayfair, Shopify and eBay stocks have been dragged lower by Amazon’s sales disappointment. The e-commerce giant reported revenue of \$52.9 billion in its first quarterly report, missing estimates of \$53.72 billion. Investors had expected more from Amazon after it announced that it would invest billions into creating its own branded fashion lines and add 1 million U.S. square feet to its fulfillment centers, even though the company continues to grow revenue at an impressive rate of 35%.

## Amazon Expectations

Amazon’s most recent earnings report shows that Amazon is still a major player in the ecommerce market. The company’s online sales fell below Wall Street’s consensus of \$51.9 billion. The company is projecting total net sales of \$116 billion to \$121 billion for Q2, largely in-line with expectations.

## Shopify Stock

Shopify Stock and Wayfair Stock are down more than 10% in early trading Friday after Amazon.com's sales growth fell short of expectations. Shopify stock is down 6.28% during the pre-market session, which is the worst performer on the index this morning. Revenue for the second quarter was \$957 million, up 42% year-over-year and above the Thomson Reuters consensus estimate of \$940 million. Ecommerce revenue grew 45%, while Shopify Plus customers increased to over 18,000 from 11,100 a year earlier.

Shopify is the premier multi-channel cloud-based commerce platform for small and medium-sized businesses. With the Shopify platform, you can easily launch your own online store to sell physical products, digital products like videos and music, or services to customers around the world.

Market NewsTechnology

## All You Need To Know About Hypebeast Reverse Merger

If you love sneakers and streetwear, you might be well-versed with Hypebeast. This is a Hong Kong-based company that manufactures sneakers and streetwear. It is a household name in Hong Kong and the entire East Asia region. The 16-year old company is better-known for setting the standards in the streetwear fashion industry, but it's also involved in technology, sports, art and food. The company prides itself in identifying emerging trends in culture and lifestyle to create an eco-system that promotes cultural discovery and connection.

## Hypebeast Reverse Merger

The company is planning to list on the Nasdaq by merging a SPAC with an already-listed company Iron Spark. The merger will see the new entity listed on the Nasdaq with an already-identified ticker "HYPE". Merging a profitable or high-potential company with a public company that is not doing so well is the cheapest way of taking a company public. This is because the cost of taking a company public through an IPO is beyond the reach of many businesses. Through the merging of the SPAC and the public company, Hypebeast will become a publicly-listed company. It is important to note that the company is already listed on the Hong Kong Stock Exchange, so it will be dual listed on the two major exchanges.

## What Products and Services Does the Company Offer?

Founded by Kevin Ma in 2005, Hypebeast was originally just a sneaker blog. The company has now grown to be an e-commerce and digital media company that focuses on lifestyle, culture and fashion. It mainly focuses on streetwear fashion. The company has grown to become one of the trend-setters in Hong Kong.

## Who is Involved in the SPAC?

The Hypebeast Reverse merger deal is backed by a star-studded pool of investors, including Naomi Osaka - the tennis star, Tom Brady - the famous quarterback, Kevin Durant - NBA star, Rich Kleiman, Adam Levine, Joe Gebbia and Tony Hawk among other stars.

Market NewsTechnology

## Vacasa: Standing Out In The Vacation Rental Sector

The travel industry was booming before the pandemic began. Everything slowed down due to health concerns but many are still bullish about industry prospects. Vacasa is a startup that is betting on a big industry rebound once the pandemic subsides. It is a rental management company from Portland, Oregon launched back in 2009. With more than 30,000 vacation homes and 6,500 employees, Vacasa is a major player that turned heads with its IPO.

## Vacasa SPAC

Vacasa took the unconventional route of merging with a SPAC called TPG Pace Solutions Corp for about \$4 billion. The executives behind TPG have already completed several successful transactions before this deal. This should boost the confidence of prospective investors, although risk remains due to the volatile environment. People are eager to go on vacations after spending more than two years mostly at home. Time will tell how quickly they can do so safely.

## Vacasa Operating Results

Vacasa isn't profitable yet but it is enjoying increased revenues and reduced losses. In the third quarter of 2021, the company recorded a 77% surge in revenue year-on-year with a total of \$330 million. It has revised its forecast by \$100 million given better than expected earnings. According to its chief financial officer Jamie Cohen, only 10% of shares are publicly floated with ticker symbol VCSA. Existing shareholders of Vacasa stock are keen on holding on to their equity, showing belief in the company's future.

## Vacasa vs AirBnb

Many compare Vacasa and AirBnB but the two have different business models. With AirBnB, homeowners get a platform on which to list their properties and get reservations. However, they will need to manage guest screening, overlapping requests, visitor support, online marketing, and more. On the other hand, Vacasa is a full-service vacation rental management company. It does repairs, maintenance, cleaning, stocking, support, marketing, and everything else necessary to keep the rental units thriving.

AirBnB is good for people who want to be more involved in the daily operations while Vacasa is perfect for property owners who prefer a hands-off investment approach. The latter provides more opportunities to scale up while maintaining a high standard of care for the properties. People do not have to worry about time commitments and the stress of running a hospitality business. They don't even have to live near the rental units so they can just keep adding more wherever they find great spots.