Discover and read the best of Twitter Threads about #MeanReversion
Most recents (8)
Thread:-
Why Investing in Companies with Peak Profit Margins Requires Caution 📉⛔️
👇👇👇
Why Investing in Companies with Peak Profit Margins Requires Caution 📉⛔️
👇👇👇
1/7: #Investing in companies at peak profit margins can be risky. As #companies reach their maximum profitability, a phenomenon known as mean reversion often occurs. This means that profit margins tend to revert back to their long-term average levels over time.
2/7: Mean reversion suggests that high profit margins may not be sustainable in the long run. As margins normalize or decrease, it can lead to potential declines in the company's stock price. So, exercise caution when considering such #investment’s
This is the start of Drip Drops Knowledge!
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#SPY #SPX $ES_F #QQQ #futurestrading #OptionsTrading #options
Remember to hit that follow button if you like the content.
#SPY #SPX $ES_F #QQQ #futurestrading #OptionsTrading #options
The first official Knowledge Drop. $GME reported earnings last night and is up over 50% this morning. A short float of 24% (as reported by #Ortex) might have something to do with that. Breakdown in slide, follow me for weekly Knowledge Drops!
#GME #ShortSqueeze
#GME #ShortSqueeze
Last week, I discussed the concept of a “short squeeze.” This week let’s look at the dynamics of dealer hedging and the concept of a “gamma squeeze.”
#ShortSqueeze #GammaSqueeze #SPY #SPX $ES
#ShortSqueeze #GammaSqueeze #SPY #SPX $ES
1/ ¿A vueltas con la REVERSIÓN A LA MEDIA, querido inversor? ¿Pero a qué nos referimos con "reversión a la media"? ¿A que #Telefónica volverá a cotizar a 20€? No, no. Nada de eso. Echemos un vistazo con este HILO 👇
#reversiónalamedia #meanreversion
#reversiónalamedia #meanreversion
2/ ¿Cómo sabemos si un mal negocio mejorará con el tiempo? No lo sabemos. Pero sí sabemos que muchos negocios malos lo harán. La razón, una fuerza del mercado conocida como reversión a la media, nombre técnico para una idea simple, aunque vaga: las cosas vuelven a la normalidad.
3/ La reversión a la media eleva los precios de las acciones infravaloradas y hace bajar los precios de las acciones caras al tiempo que devuelve a las empresas de rápido crecimiento y grandes beneficios a la tierra, y hace repuntar negocios con ganancias decrecientes o ...
Hello Monday!
#Inflation remains front and center as we begin the week with #CPI, Powell Testimony, and 10-year note auction all on tap for Wednesday.
Let's dig into the 🧮!
#Inflation remains front and center as we begin the week with #CPI, Powell Testimony, and 10-year note auction all on tap for Wednesday.
Let's dig into the 🧮!
Asia closed mostly ↗️
$NIKK holiday
$SSEC 3594 +0.4%
$TWII 18239 +0.4%
$HSI 23747 +1.1%
$KOSPI 2927 -0.95% ⏪
$IDX 6991 -0.15%
Australia ↔️
$ASX 7447 -0.1%
India ↗️
$BSE 60290 +0.9%
$NIKK holiday
$SSEC 3594 +0.4%
$TWII 18239 +0.4%
$HSI 23747 +1.1%
$KOSPI 2927 -0.95% ⏪
$IDX 6991 -0.15%
Australia ↔️
$ASX 7447 -0.1%
India ↗️
$BSE 60290 +0.9%
Europe opens mostly ↘️
$DAX 15917 -0.2%
$FTSE 7448 -0.1%
$CAC 7211 -0.1%
$AEX 786 -0.35%
$IBEX 8738 -0.15%
$MIB 27670 +0.2%
$SMI 12757 -0.3% ⏪
$MOEX 3801 +0.75% 🪆
$DAX 15917 -0.2%
$FTSE 7448 -0.1%
$CAC 7211 -0.1%
$AEX 786 -0.35%
$IBEX 8738 -0.15%
$MIB 27670 +0.2%
$SMI 12757 -0.3% ⏪
$MOEX 3801 +0.75% 🪆
Weekly Global Macro Review 10/07/21
1/15
@hedgeye calls it #Quad2 reflation, but I rather prefer @jam_croissant’s colorful description of “endless gamma squeezes” oh so reminiscent of 🎉🍾🥳 like it’s 1999!
Let’s dig into the macro 🧮 for the week
1/15
@hedgeye calls it #Quad2 reflation, but I rather prefer @jam_croissant’s colorful description of “endless gamma squeezes” oh so reminiscent of 🎉🍾🥳 like it’s 1999!
Let’s dig into the macro 🧮 for the week
2/15
A 🕊 #FOMC on Wednesday and a 💪🏼 #NFP report on Friday with underlying wage #inflation of 4.9% y/y was enough to ignite a rally in the $UST market ↗️
WTF, you say?
A 🕊 #FOMC on Wednesday and a 💪🏼 #NFP report on Friday with underlying wage #inflation of 4.9% y/y was enough to ignite a rally in the $UST market ↗️
WTF, you say?
3/15
Indeed, the MOVE 66.30 ↘️ from 78.34 on Tuesday as the 10/2s curve remained 🥞 at 105
2Y .405 -9.6 bps
5Y 1.056 -12.9 bps
10Y 1.455 -10.6 bps
30Y 1.888 -5.1 bps
Chart: Despite a strong #NFP, the $TNX ↘️ -10.6 BPS to 1.455 and at critical support
Indeed, the MOVE 66.30 ↘️ from 78.34 on Tuesday as the 10/2s curve remained 🥞 at 105
2Y .405 -9.6 bps
5Y 1.056 -12.9 bps
10Y 1.455 -10.6 bps
30Y 1.888 -5.1 bps
Chart: Despite a strong #NFP, the $TNX ↘️ -10.6 BPS to 1.455 and at critical support
Hello Friday and the last trading day of October!
MTD returns
$WTIC +10.37%
$CORN +4.84%
$CRB +4.17%
$COPPER +3.07%
$GOLD +2.60%
$USD -0.97%
$COMPQ +6.92%
$SPX +6.71%
$CAC +4.36%
$DAX +2.85%
$KOSPI -1.93%
$VIX 16.53 -661 BPS
$UST2Y +22 BPS
$UST10Y +5 BPS
Let's dig into 🧮!
MTD returns
$WTIC +10.37%
$CORN +4.84%
$CRB +4.17%
$COPPER +3.07%
$GOLD +2.60%
$USD -0.97%
$COMPQ +6.92%
$SPX +6.71%
$CAC +4.36%
$DAX +2.85%
$KOSPI -1.93%
$VIX 16.53 -661 BPS
$UST2Y +22 BPS
$UST10Y +5 BPS
Let's dig into 🧮!
Asia closed ↔️ on the day #dispersion
$NIKK 28893 +0.25% 🔺
$SSEC 3547 +0.8% 🔺
$IDX 6591 +1.05% 🔺
$TWII 16897 -0.3% 🔻
$HSI 25377 -0.7% 🔻
$KOSPI 2971 -1.3% 🔻
Australia ↘️
$ASX 7324 -1.45%
India ↘️
$BSE 59124 -1.4%
$NIKK 28893 +0.25% 🔺
$SSEC 3547 +0.8% 🔺
$IDX 6591 +1.05% 🔺
$TWII 16897 -0.3% 🔻
$HSI 25377 -0.7% 🔻
$KOSPI 2971 -1.3% 🔻
Australia ↘️
$ASX 7324 -1.45%
India ↘️
$BSE 59124 -1.4%
Europe decidedly ↘️
$DAX 15570 -0.75%
$FTSE 7230 -0.25%
$CAC 6782 -0.35%
$AEX 805 -0.95%
$IBEX 9023 -0.05%
$MIB 26803 -0.3%
$SMI 12081 -0.6%
$MOEX 4150 -0.95% 🪆
$DAX 15570 -0.75%
$FTSE 7230 -0.25%
$CAC 6782 -0.35%
$AEX 805 -0.95%
$IBEX 9023 -0.05%
$MIB 26803 -0.3%
$SMI 12081 -0.6%
$MOEX 4150 -0.95% 🪆
#Straddles vs #Strangles ( Sell only )
These are the most common #Options strategies when one would start with #OptionsTrading.
Let’s understand from a broader perspective what’s the difference between these two.
These are the most common #Options strategies when one would start with #OptionsTrading.
Let’s understand from a broader perspective what’s the difference between these two.
Would not like to discuss the construction difference between them if you don’t know stop trading #options
#Straddles
You get higher premium so pnl would be higher compared to #strangles
But from where are you getting higher premiums is that your selling 0.5 #delta.
#Straddles
You get higher premium so pnl would be higher compared to #strangles
But from where are you getting higher premiums is that your selling 0.5 #delta.
So probability of one going wrong is always 50% so to simply put one side is goin to get stuck in a #straddle but then market tends to #flucuate a lot so there is always the case of #meanreversion if you have selected the #strike rightly.
#NIFTY Close-Open of last 3 days:
31st Oct'19: -13pts (NSE TO: 50.8k crs being expiry day)
01st Nov'19: +4pts (NSE TO: 42.8k crs)
04th Nov'19: +16pts (NSE TO: 40k crs)
Today's high 11989.15
Largecaps arent looking healthy at current levels.
View changes > 12042
31st Oct'19: -13pts (NSE TO: 50.8k crs being expiry day)
01st Nov'19: +4pts (NSE TO: 42.8k crs)
04th Nov'19: +16pts (NSE TO: 40k crs)
Today's high 11989.15
Largecaps arent looking healthy at current levels.
View changes > 12042
View is intact.. maintain SL 12042..
Today's high was 12002.90
Midcap and Smallcaps are showing some weakness
Breadth wasnt good today despite the rally in Banknifty.
Today's high was 12002.90
Midcap and Smallcaps are showing some weakness
Breadth wasnt good today despite the rally in Banknifty.
View is intact.. maintain SL 12042..
Today's high was 12034.15 but..
close was 11908.
First close below previous day low after 21 sessions.
Breadth continues to deteriorate.
#MeanReversion to at-least 20 SMA likely.. maybe 50 SMA also
Today's high was 12034.15 but..
close was 11908.
First close below previous day low after 21 sessions.
Breadth continues to deteriorate.
#MeanReversion to at-least 20 SMA likely.. maybe 50 SMA also
