Monday 03 Aug 2020 Morning Notes

After careful consideration this weekend, I've declared this epoch the second Golden Age of the Ratio Trade due to a confluence of factors, namely Robinhood/commission free trading, WSB/YOLOing, work from home, and weekly options. The 1st Golden Age of the Ratio Trade followed the crash of '87 and the advent of what's now accepted as the volatility smile, as investors panic bought OTM options. The strategy doesn't lend itself to trading size or the passive trader, as it requires spotting absurd bids in OTM options. But the spreads that can be created offer some truly compelling risk/reward dynamics

Earnings: Yesterday AMC:
Today BMO: CLX, HSBC, MCK, MPC, RACE, TSN; L

Other News:

Follow Through Names to Watch: AAPL, PINS, SHAK

GAINERS:
ADT: +61% at 14 on GOOGL stake;
VAR: +22.5% at 174.85 on t/o deal; 
CODX: +12% at 27.06; 
MPC: +6% at 40.40 on asset sales/earnings;
MCK: +4.2% at 156.50;

LOSERS:
ALRM: -9.4% at 63.50 on GOOGL/ADT stake;
L: -5% at 34.50;
SNAP: -2% at 22 on TikTok news;

FLAT:

Follow through watch:

Day before Y'day AMC: AAPL, AMZN, CC, COG, DVA, EA, EXAS, EXPE, GILD, GOOG, GOOGL, HIG, MGM, SHAK, TEAM, TNDM, VRTX, X, XLNX
Yesterday BMO: ABBV, CAT, CBOE, CHTR, CL, CVX, GT, ITW, JCI, LYB, MRK, PINS, PSX, UA, UAA, VFC, WY, XOM

Y'day Other News: PINS: +34% at 33.75, damn! AAPL: +6% at 409, or $1.8t! AMZN: +5% at 3215, really wish I threw $50k at Jan '21 2k calls back when it was at 1600 in March :( CHTR: +4.7% at 590; TEAM: -5.7% at 177; SHAK: -4.6% at 52.70; CVX: -4% at 82.75; GILD: -3.5% at 69.75; XLNX: -3.5% at 108;

2 days ago AMC: ADM, APA, CTSH, CXO, FB, LRCX, NOW, PYPL, QCOM, TDOC, URI
2 days ago BMO: ALXN, AMT, APO, AZN, BAX, BUD, CI, CLF, CMCSA, COP, DD, GRUB, IP, KHC, LLY, MA, NEM, NOC, OSTK, PG, SO, SWK, TAP, UPS, VLO, YUM

2 Day Old News:

TT Track of the Day: Rage Against the Machine - Wake up