Options Trading Risk Control Tips

Today is Monday, December 6, 2021.

Options Trading Risk Control Tips

With the right knowledge, investors can learn how to control risk using options trading, said Ad Deum Funds Owner Jason DeLorenzo in a new episode of the Early Bird podcast.

The Good: Options trading gives investors more flexibility than traditional equities, as well as the ability to control risk, DeLorenzo said.

The Bad: However, DeLorenzo said that a lot of investors are using options trading without fully understanding the ramifications.

Perception: Options trading sometimes has a bad reputation, DeLorenzo said, especially since some derivatives received blame for the financial crisis in 2008.

Final Thoughts: Learn how to use options to minimize risk and how to get started with options trading by listening to the newest episode of the Early Bird Podcast.

Notables

Notable Earnings Today: MongoDB (Nasdaq: MDB), Coupa Software (Nasdaq: COUP), DLH Holdings (Nasdaq: DLHC), HealthEquity (Nasdaq: HQY), Science Applications International (NYSE: SAIC).

Notable IPOs Today: Founder SPAC Class A Ordinary Shares (Nasdaq: FOUN), Crypto 1 Acquisition Corp Unit (Nasdaq: DAOOU), Rose Hill Acquisition Corporation Class A Ordinary Shares (Nasdaq: ROSE), Compass Digital Acquisition Corp. Class A Ordinary Shares (Nasdaq: CDAQ).

Notable Equity Crowdfunding Campaigns Ending Today: Minnesota Soccer Holdings (Wefunder), Local Roots Kombucha (StartEngine).

Notable Economic Events Today: N/A.

Cryptocurrency’s Santa Claus Rally

Cryptocurrency investors are hoping for a Santa Claus rally, which typically refers to stock market prices increasing during the holiday season into the new year.

Background: Most cryptos reached all-time highs last month, but the Omicron variant of the coronavirus has seemed to push back against many cryptos. A Santa Claus rally is now in doubt.

Bitcoin in Focus: Last year, Bitcoin experienced a Santa Claus rally with the price soaring during the holidays and into 2021.

Half Glass Empty: But that good sentiment is not for every coin. Last year, XRP did not experience a Santa Claus rally.

Final Thoughts: Unlike the stock market, the crypto world doesn’t have decades of data to properly measure a Santa Claus rally. However, some investors are still hopeful that one will come in 2021.

Alibaba Shakes Up CFO Role

Alibaba (NYSE: BABA) announced late Sunday that Toby Xu, Deputy Chief Financial Officer, will succeed Maggie Wu as the company’s Chief Financial Officer in April.

Details: In addition to the shake-up for the CFO role, Alibaba also announced that it is creating two new units for its e-commerce business - one for international e-commerce and one for e-commerce in China, according to Reuters.

Background: The overhaul comes as Alibaba has faced numerous headwinds - including competitors and regulations.

Numbers: Shares of Alibaba are down over 50% in 2021. It’s been over a year since Alibaba reached its highest stock price.

Final Thoughts: Alibaba posted $84.5 billion in Singles Day sales this year. It is a record high for the company, but it also represents slower growth.

Trends to Watch

Falling Down: Bitcoin Price Tumbles After Wall Street Selloff (The Wall Street Journal)

Do or Die: Crowdfunded Electric Vehicle Firm Uniti Needs to Raise 5 Million SEK by Next Week or it May Shutdown (Crowdfund Insider)

Move Over: PayPal, Square, among fintechs could replace traditional credit card payments: Kansas City Fed (Seeking Alpha)

Pressuring: Kohl’s Urged to Consider Sale by Activist Investor (The Wall Street Journal)

Sold: Israeli firm to sell HSBC Tower in New York for $855 million (Reuters)

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