SolarCity (SCTY): Q1 EPS of -$0.41 misses by $0.15. Revenue of $30M (+21% Y/Y) beats by $900K. 46MW deployed (+12% Y/Y). Nominal contracted payments +10% Q/Q to $1.22B. Expects Q2 revenue of $21M-$28M, below $40.5M consensus. Reiterates guidance for 250MW in 2013 deployments. Now expects positive net cash flow in Q2. Shares -6.2% AH after rising 24.2% in regular trading. CC at 5PM ET (webcast). (PR) [View news story]
Almost surely. Shorts didn't want to get burned on a surprise earnings beat like they did with TSLA.
SolarCity (SCTY): Q1 EPS of -$0.41 misses by $0.15. Revenue of $30M (+21% Y/Y) beats by $900K. 46MW deployed (+12% Y/Y). Nominal contracted payments +10% Q/Q to $1.22B. Expects Q2 revenue of $21M-$28M, below $40.5M consensus. Reiterates guidance for 250MW in 2013 deployments. Now expects positive net cash flow in Q2. Shares -6.2% AH after rising 24.2% in regular trading. CC at 5PM ET (webcast). (PR) [View news story]
They don't have significant barriers to entry, but they do have a somewhat significant first-mover advantage in a lot of markets.
Tesla Motors (TSLA): Q1 EPS of $0.12 beats by $0.08. Revenue of $562M (+16% Y/Y) beats by $63M. Conference call scheduled for 5:30 PM EST. Shares +8.1% AH to $60.33. (PR) [View news story]
Elon's other brainchild, SolarCity (SCTY), up 4.5% AH in sympathy.
Once again in 2012 equity investors failed to keep up with their benchmark; the S&P rose 8.21%, while equity-fund investors made just 4.25%. According to Barron's, learning to sell puts when financial news turns dour is the antidote to underperformance. [View news story]
Ken,
Just to feed my curiosity, do you engage in an actively-managed put-selling strategy? And if so, in average market conditions, what is your margin per contract like?
Once again in 2012 equity investors failed to keep up with their benchmark; the S&P rose 8.21%, while equity-fund investors made just 4.25%. According to Barron's, learning to sell puts when financial news turns dour is the antidote to underperformance. [View news story]
My point is that the article fails to discuss the intermediate drawdowns of this type of strategy. I can't believe a put-selling strategy outperformed the index during late '07 / early '08.
Hindsight is 20/20. So when the other flippantly comments on how selling GS puts in late '08 was a great play, he ignores an important part of the discussion: those that sold 150 strike puts when GS was trading at 190 (just 6 months earlier) faced catastrophic losses and margin calls. Selling puts in November '08 is still a form of market-timing. There is no silver bullet.
Personally, I prefer a "smoother" strategy, one that deliver returns with lower standard deviation.
Once again in 2012 equity investors failed to keep up with their benchmark; the S&P rose 8.21%, while equity-fund investors made just 4.25%. According to Barron's, learning to sell puts when financial news turns dour is the antidote to underperformance. [View news story]
Selling puts, in my opinion, doesn't offer a favorable risk-return tradeoff. A majority of the time, you'll make a steady stream of modest income; on rare occasions, however, you'll face catastrophic losses, losses that aren't accounted for in the Black-Scholes pricing model. It's a strategy that fails exactly when you can't afford to have it fail (during six sigma events).
In the current environment, I prefer staying heavily invested and using OTM put spreads to lock in YTD gains. For example, I have been over 95% invested in equities since Jan 1. I bought some put spreads in late March (June expiry) and am in the process of selling some non-core holdings in anticipation of the annual April/May correction.
Wall Street's Washington worries appear to be growing. According to the 48 economists, fund managers and strategists who responded to a recent CNBC survey, financial professionals rank the "fiscal cliff" as the top threat facing the U.S. economy and put the chance of recession in the next year at a 13-month high of nearly 29%. Respondents estimate going over the "cliff" will reduce growth by 1.6%, which is a large drag on an economy that's only expected to grow by just 1.92% in 2013. [View news story]
Doesn't that qualify as bullish sentiment aka a contrarian indicator? Sounds like a bearish sign to me...
I kid. If a recession is coming next year, it's not going to be the fiscal cliff that causes it. This event is the most overhyped event since Y2K.
I would get long for a trade if we close above 9.63. 20-day/50-day SMA crossover is encouraging for the bulls, and we look to be breaking through the 50-day SMA with some momentum. If we can close at a new high and take out the intraday high of 9.78, a significant breakout to the upside looks imminent.
"Market fundamentals do not justify these extremely low levels of volatility," writes JPMorgan's Marko Kolanovic, attributing the recent lack of action to large option sales (as traders try to generate yield) pinning the S&P near 1400. Much of these positions are expiring today, which should "loosen the grip" on the VIX (VXX). (h/t tradefast) [View news story]
Short the S&P with a target about 5% below current levels, says Goldman's Noah Weisberger, whose worries about the economy just got worse with the collapse in the Philly Fed index. [View news story]
Goldman's Short Call And 'Monetary Cliff' Warning Serve As Fair Warning To Investors [View article]
Does no one remember when Goldman proclaimed it was a "once-in-a-lifetime" buying opportunity for equities earlier this spring? Shortly after, we experienced this correction. Goldman is merely trying to induce panic in the muppets so they can rearrange their portfolios accordingly. They need to cover their shorts and enter some long positions, and striking fear in the retail investor (the only people that listen to Goldman's predictions) is how they jawbone the market in their favor and provide liquidity for their trades.
Don't be a muppet. Futures are up and financials will lead the US markets higher.
SolarCity (SCTY): Q1 EPS of -$0.41 misses by $0.15. Revenue of $30M (+21% Y/Y) beats by $900K. 46MW deployed (+12% Y/Y). Nominal contracted payments +10% Q/Q to $1.22B. Expects Q2 revenue of $21M-$28M, below $40.5M consensus. Reiterates guidance for 250MW in 2013 deployments. Now expects positive net cash flow in Q2. Shares -6.2% AH after rising 24.2% in regular trading. CC at 5PM ET (webcast). (PR) [View news story]
SolarCity (SCTY): Q1 EPS of -$0.41 misses by $0.15. Revenue of $30M (+21% Y/Y) beats by $900K. 46MW deployed (+12% Y/Y). Nominal contracted payments +10% Q/Q to $1.22B. Expects Q2 revenue of $21M-$28M, below $40.5M consensus. Reiterates guidance for 250MW in 2013 deployments. Now expects positive net cash flow in Q2. Shares -6.2% AH after rising 24.2% in regular trading. CC at 5PM ET (webcast). (PR) [View news story]
Tesla Motors (TSLA): Q1 EPS of $0.12 beats by $0.08. Revenue of $562M (+16% Y/Y) beats by $63M. Conference call scheduled for 5:30 PM EST. Shares +8.1% AH to $60.33. (PR) [View news story]
Once again in 2012 equity investors failed to keep up with their benchmark; the S&P rose 8.21%, while equity-fund investors made just 4.25%. According to Barron's, learning to sell puts when financial news turns dour is the antidote to underperformance. [View news story]
Just to feed my curiosity, do you engage in an actively-managed put-selling strategy? And if so, in average market conditions, what is your margin per contract like?
Once again in 2012 equity investors failed to keep up with their benchmark; the S&P rose 8.21%, while equity-fund investors made just 4.25%. According to Barron's, learning to sell puts when financial news turns dour is the antidote to underperformance. [View news story]
Hindsight is 20/20. So when the other flippantly comments on how selling GS puts in late '08 was a great play, he ignores an important part of the discussion: those that sold 150 strike puts when GS was trading at 190 (just 6 months earlier) faced catastrophic losses and margin calls. Selling puts in November '08 is still a form of market-timing. There is no silver bullet.
Personally, I prefer a "smoother" strategy, one that deliver returns with lower standard deviation.
Once again in 2012 equity investors failed to keep up with their benchmark; the S&P rose 8.21%, while equity-fund investors made just 4.25%. According to Barron's, learning to sell puts when financial news turns dour is the antidote to underperformance. [View news story]
In the current environment, I prefer staying heavily invested and using OTM put spreads to lock in YTD gains. For example, I have been over 95% invested in equities since Jan 1. I bought some put spreads in late March (June expiry) and am in the process of selling some non-core holdings in anticipation of the annual April/May correction.
Wall Street's Washington worries appear to be growing. According to the 48 economists, fund managers and strategists who responded to a recent CNBC survey, financial professionals rank the "fiscal cliff" as the top threat facing the U.S. economy and put the chance of recession in the next year at a 13-month high of nearly 29%. Respondents estimate going over the "cliff" will reduce growth by 1.6%, which is a large drag on an economy that's only expected to grow by just 1.92% in 2013. [View news story]
I kid. If a recession is coming next year, it's not going to be the fiscal cliff that causes it. This event is the most overhyped event since Y2K.
TGIF: Stop The Rally, We Want To Get Off [View article]
Check out the big banks and Ford for solid breakouts that have room to run until reality sets in. Best of luck to all.
Ford Set To Rally This Fall [View article]
Try And Try Again Tuesday: 3 More Trade Ideas That Make 300% If The Market Pops [View article]
"Market fundamentals do not justify these extremely low levels of volatility," writes JPMorgan's Marko Kolanovic, attributing the recent lack of action to large option sales (as traders try to generate yield) pinning the S&P near 1400. Much of these positions are expiring today, which should "loosen the grip" on the VIX (VXX). (h/t tradefast) [View news story]
Short the S&P with a target about 5% below current levels, says Goldman's Noah Weisberger, whose worries about the economy just got worse with the collapse in the Philly Fed index. [View news story]
Written on March 21, when the S&P500 opened at 1405.52. We topped out at 1419.04, less than 1% above that price
Goldman's Short Call And 'Monetary Cliff' Warning Serve As Fair Warning To Investors [View article]
Written on March 21, when the S&P500 opened at 1405.52. We topped out at 1419.04, less than 1% above that price. You be the judge.
Goldman's Short Call And 'Monetary Cliff' Warning Serve As Fair Warning To Investors [View article]
Don't be a muppet. Futures are up and financials will lead the US markets higher.
Bank of America (BAC) is likely to sell its overseas wealth management unit to Julius Baer for $1.5-2B, reports CNBC. [View news story]