PropNotes

PropNotes

Each Wednesday, we publish an idea about an interesting, under-the-radar stock that we think has long term potential and deserves a little attention. This week, we are looking at $BOWX, which is the special purpose acquisition corp looking to bring WeWork public. For those who aren't familiar with WeWork, it's an office space company that provides flexible and...

PropNotes

Exactly what it sounds like! Each Tuesday we publish our sector reads. These reads combine relative and absolute performance projections in order to come up with strength profiles. You could use these as the basis of a long/short sector strategy, or as a starting point for a top-down hunt to find the best positioned single names. The scale goes from -4 to +4. Good...

PropNotes Updated 

Whooo boy, interesting market out there. First fun day in months! The following is taken from our morning market note: --- TECHNICALS For the first time in a long time, the daily and weekly technical picture has nearly fully diverged, with the weekly situation only registering a short term bump, while the daily reads nearly fully negative. The Weekly Shard...

PropNotes

Ally Bank is a high quality bank with a stable price, reasonable valuation, and no upcoming catalysts in the next 30 days. Due to it's channeling price action, selling the OCT 15 48/55 short strangles, which have a breakeven of 46.48 and 56.52, seems like a free money trade. Earnings are on the 27th. Alternatively, you could sell some 2:1 put ratios for a higher...

PropNotes

Each Wednesday, we publish an idea about an interesting, under-the-radar stock that we think has long term potential and deserves a little attention. This week, we are looking at $MKTW. This may seem like a tangent, but stick with me here. For those who aren't aware, Discordia Research LLC (which operates this account) is an options and investment research...

PropNotes

Exactly what it sounds like! Each Tuesday we publish our sector reads. These reads combine relative and absolute performance projections in order to come up with strength profiles. You could use these as the basis of a long/short sector strategy, or as a starting point for a top-down hunt to find the best positioned single names. The scale goes from -4 to +4. Good...

15:39

PropNotes

Good afternoon everyone! Just wanted to examine how gamma affects the markets, how you can use it in your own process, and an interesting dynamic that has been playing out in the S&P over the last few months. Cheers!

PropNotes

Nothing much to say here. Valuation is outrageous and unsustainable, and the parabolic price action, with hedge funds getting in at 'any price', will bite current buyers. This is a $150 stock on a *good* day. Risk seems skewed to the downside.

PropNotes

Good morning everyone! Every Thursday morning we highlight our favorite trade setup of the week. This week, we will be taking a look at a flush setup in $TLRY. Sorry for the lack of posts here and on SeekingAlpha recently, a few of us are out of the office in Okemo, VT taking some vacation. We will be back to regular posting next Monday. This setup is simply too...

PropNotes

Exactly what it sounds like! Each Tuesday we publish our sector reads. These reads combine relative and absolute performance projections in order to come up with strength profiles. You could use these as the basis of a long/short sector strategy, or as a starting point for a top-down hunt to find the best positioned single names. The scale goes from -4 to +4. Good...

PropNotes

Apple's recent growth bump, primarily caused by COVID-induced demand drivers, has sent the stock and multiple soaring. The current valuation is pricing in higher growth for longer. This seems unlikely. Trimming shares or selling calls here to reduce downside seems attractive, given the extended multiples. --------- For those who haven't been paying attention,...

PropNotes

Good morning everyone! Every Thursday morning we highlight our favorite trade setup of the week. This week, we will be taking a look at a breakout setup in $NFLX. Now, before everyone goes and mentions how strong the stock is... don't worry. We know. We expect the stock to consolidate up here for a little while given how strong the ADX / RSI is. However, over the...

PropNotes

Exactly what it sounds like! Each Tuesday we publish our sector reads. These reads combine relative and absolute performance projections in order to come up with strength profiles. You could use these as the basis of a long/short sector strategy, or as a starting point for a top-down hunt to find the best positioned single names. The scale goes from -4 to +4. Good...

PropNotes

Good morning gang! Every Monday from now on we will present our top spread trade idea of the week. This week, we are looking at a 3d printing spread between Desktop Metal & NanoDimension, and Stratasys & 3D Systems. If you look out 5-10 years in the 3d printing space, most of the uses for 3d printing and additive manufacturing will be within the automotive,...

PropNotes

Good morning everyone! From now on, every Thursday morning we will be highlighting our favorite trade setup of the week. This week, we will be taking a look at a short setup in A. Agilent Technologies makes lab equipment for life sciences and chemical companies, which is a stable and growing market. The company does a lot in revenue - roughly 6 Billion over the...

PropNotes

Each Wednesday from now on, we will be publishing an idea about an interesting, under-the-radar stock that we think has long term potential and deserves a little attention. This week, we are looking at DNMR. For those who are unfamiliar, Danimer Scientific is a bioplastics producer based right here in the USA. The company went public via SPAC last year, and after...

PropNotes

Exactly what it sounds like! Each Tuesday from now on we will be publishing our sector reads. These reads combine relative and absolute performance projections in order to come up with strength profiles. You could use these as the basis of a long/short sector strategy, or as a starting point for a top-down hunt to find the best positioned single names. The scale...

PropNotes

Eagle eyed viewers of this chart might be able to see that something is *different* between 2010-2019 and 2020-2021. The slope of the market's ascent over the last 16 months has been nothing short of astonishing, and it's more than double the slope of the previous decade. Even if you make the chart a log chart, the slope of the recent recovery is still higher than...