AchillesGames

BULLISH $SQ $DKNG $BA Possibility Performs [07/21/2020] : wallstreetbets

BULLISH $SQ $DKNG $BA Option Plays [07/21/2020] : wallstreetbets

Recap

Earlier Analysis:

https://www.reddit.com/r/choices/feedback/hrbexa/bullish_options_plays_24_month_horizon/?utm_source=share&utm_medium=web2x

https://www.reddit.com/r/choices/feedback/huwfat/short_long_option_plays_07202020/?utm_source=share&utm_medium=web2x

This submit covers Possibility Performs for $SQ, $DKNG, $BA

The time-frame of those choices are 3-6 months out, to keep away from Theta burn and maximize ITM potential. The fantastic thing about lengthy performs is that the inventory solely wants to maneuver just a few % to be worthwhile, with a very long time horizon as a hedge. Shut the place inside 2-Four months to reduce theta and maximize delta alternative. I’ve additionally included a shorter timeframe with larger danger/reward and decrease premiums. Quick performs are laid out, however not advisable.

1) Sq., Inc $SQ [Information Technology Services] – BULLISH

Sq., Inc. engages within the provision of bank card cost processing options. It’s a cohesive commerce ecosystem that helps sellers begin, run, and develop their companies. The companies sellers downloads the Sq. Level of Sale cellular app, they’ll rapidly and simply take their first cost, sometimes inside minutes.

Bullish Sq. Case:

The continued shift towards digital funds has created, and can proceed to create, room for acquirers to see sturdy progress with out stealing share from one another.

Ancillary providers have gotten a extra essential engine for progress and can assist Sq. absolutely monetize its service provider consumer base and enhance margins.

Digital cost progress is shifting abroad, and Sq.’s enterprise mannequin appears transportable into worldwide markets, as the corporate doesn’t depend on a big native salesforce to draw retailers.

r/wallstreetbets - BULLISH $SQ $DKNG $BA Option Plays [07/21/2020]

$SQ profile, from FindMarketPlays early entry platform

In each earlier analysis posts, I mentioned the bullish case of Twitter hinging on a profitable subscription platform.

Supply: https://www.theverge.com/2020/7/8/21317266/twitter-subscription-platform-codename-gryphon-job-listing

Subscription platforms require a dependable cost processor. Guess who Dorsey goes to decide on to course of funds for Twitter’s subscription platform?

r/wallstreetbets - BULLISH $SQ $DKNG $BA Option Plays [07/21/2020]

$SQ overlaid with $SHOP, following the identical trajectory

$SHOP is buying and selling at a 69x Worth to Income a number of, with -$1.16 EPS. $SQ is buying and selling at a 11x Worth to Income a number of, with $0.72 EPS. Not solely is $SQ worthwhile, it’s in an analogous area of interest to $SHOP and has an enormous progress alternative with Twitter’s subscription platform.

Let’s check out the bizarre choices exercise scanner:

r/wallstreetbets - BULLISH $SQ $DKNG $BA Option Plays [07/21/2020]

$2 Million in $97.5 calls, expiring Aug 21. Earnings Aug 5

r/wallstreetbets - BULLISH $SQ $DKNG $BA Option Plays [07/21/2020]

$190 Jan 15 Calls

r/wallstreetbets - BULLISH $SQ $DKNG $BA Option Plays [07/21/2020]

$100 Jan 15 Calls

Large bullish bets on $SQ, notably dated round Jan 15. Coincidentally, that’s the timeframe I pegged for $TWTR $40 Calls, and for the Subscription platform to be introduced.

Private Expertise: I arrange a Shopify web site for a woman I do know who began a brick-and-mortar clothes retailer. She is… technologically challenged, to say the least. Guess what she used for funds in retail? Sq.. Even with Shopify’s poor integration with Sq., she caught with it (In opposition to my recommendation for stock & monitoring functions). As states reopen, and smaller brick and mortars are again, farmers markets, carnivals, and many others, count on progress from $SQ.

I’m eyeing a $118-$122 entry to include the inventory into my portfolio, and buy choices.

With this info, I suggest:

Quick Time period Play [HIGH RISK]:

SQ $130c Aug 7 2020, buying and selling at $6.57 at time of writing. 41% Chance ITM. Earnings Aug 05 2020.

Lengthy Time period Play:

SQ $160c Jan 15 2021, buying and selling $11.03 at time of writing. 23% Chance ITM

2) DraftKings, Inc $DKNG [Internet Software/Services] – BULLISH

DraftKings, Inc. operates as a digital sports activities leisure and gaming firm. It gives on-line and retail sports activities wagering choices, on-line every day fantasy contests and on-line on line casino video games.

r/wallstreetbets - BULLISH $SQ $DKNG $BA Option Plays [07/21/2020]

$DKNG profile, from FindMarketPlays early entry platform

At the moment, solely 5 states have authorized on-line playing [Delaware, Nevada, New Jersey, Pennsylvania, and West Virginia]. 23 states have Sports activities Betting authorized and or in laws.

r/wallstreetbets - BULLISH $SQ $DKNG $BA Option Plays [07/21/2020]

From https://investmentu.com/sports-betting-stocks/

Concentrate on on line casino playing!

You’ll be able to gamble at a on line casino whether or not there are sports activities on or not, and the next states are most definitely to legalize on-line on line casino playing within the subsequent 12 months [based on legislation]:

  • California [40 Million Population]

  • Connecticut [3.6 Million Population]

  • Illinois [13 Million Population]

  • Indiana [6.6 Million Population]

  • Massachusetts [6.8 Million Population]

  • Nevada [2.8 Million Population]

  • New York [20 Million Population]

These states signify 92.Eight Million folks, or 30% of the US inhabitants.

Supply: https://www.bettingusa.com/states/

r/wallstreetbets - BULLISH $SQ $DKNG $BA Option Plays [07/21/2020]

$DKNG overlaid with $PENN, following the identical trajectory

52 Week excessive for $DKNG is $44. With Individuals sitting at residence, legalizing on-line playing is smart financially for governments and to satiate the urge for food of the stressed, short-attention span inhabitants.

Let’s check out the bizarre choices exercise scanner:

r/wallstreetbets - BULLISH $SQ $DKNG $BA Option Plays [07/21/2020]

A stream of bullish performs, starting from $30 to $40, expiring July 24 and Aug 21.

$DKNG is each a inventory and choice play. I’m eyeing a $28-$30 entry to include the inventory into my portfolio, and buy choices.

Private Expertise: A buddy of mine ran an (unlawful) sports activities guide in school, and netted 6 figures over the course of 4 years. Tons of potential tax {dollars} on the road.

With this info, I suggest:

Quick Time period Play [HIGH RISK]:

DKNG $40 Aug 21 2020, buying and selling at $3.50 at time of writing. 36.5% Chance ITM. Earnings Aug 13 2020.**21,690 open curiosity on this place, which might management 2.2 MILLION Shares**

Lengthy Time period Play:

DKNG $45c Jan 15 2021, buying and selling $6.70 at time of writing. 28% Chance ITM

3) Boeing, Co $BA [Aerospace & Defense] – BULLISH

Boeing is the cornerstone of tens of millions of inventory portfolios. I bear in mind hawking the inventory value whereas on trip in Paris, when the aircraft crashed in March ’19. My ex was pissed. I used to be extra pissed for not choosing up some inventory and choices when it bottomed round $100 just a few months in the past.

Bullish Boeing case:

Boeing has a big backlog that covers a number of years of manufacturing for the most well-liked plane, which provides us confidence in combination demand for aerospace merchandise.

Boeing is well-positioned to profit from rising market progress in income passenger kilometers and a sturdy developed market alternative cycle over the subsequent twenty years.

We count on that industrial airframe manufacturing will stay a duopoly over the foreseeable future. We expect prospects is not going to have many choices apart from persevering with to depend on incumbent plane suppliers.

r/wallstreetbets - BULLISH $SQ $DKNG $BA Option Plays [07/21/2020]

$BA profile, from FindMarketPlays early entry platform

COVID-19 has been a blessing in disguise for $BA. COVID-19 gifted $BA time, crucial factor they wanted to repair their points. Airways will not be flying, so it’s excusable for $BA to have cancelled orders. Lastly, so long as the oil-based greenback is the worldwide forex, $BA can be in enterprise promoting weapons.

r/wallstreetbets - BULLISH $SQ $DKNG $BA Option Plays [07/21/2020]

$BA overlaid with $RTX, one other main protection contractor.

Regardless of the airline points, $BA is monitoring $RTX, as a result of protection is the place the large cash is.

Let’s check out the bizarre choices exercise scanner:

r/wallstreetbets - BULLISH $SQ $DKNG $BA Option Plays [07/21/2020]

$1.Three Million in $195 Sept 18 Calls

r/wallstreetbets - BULLISH $SQ $DKNG $BA Option Plays [07/21/2020]

$800Okay in $180 Aug 21 Calls

Earnings is July 29th, however this isn’t an earnings play. The inventory is consolidating within the $170-$180 vary, an enormous assist and resistance in 2020. I’m eyeing a $165-$170 entry to include the inventory into my portfolio, and buy choices.

With this info, I suggest:

Quick Time period Play [HIGH RISK]:

BA $200c Oct 16 2020, buying and selling at $14.01 at time of writing. 31% Chance ITM.

Lengthy Time period Play:

BA $240c Jun 18 2021, buying and selling $18.75 at time of writing. 20% Chance ITM

Conclusion

Primarily based on my analysis, $SQ stands to achieve from $TWTR information, $DKNG is poised to dominate on-line playing, $BA is slowly recovering, and won’t fail.

TL,DR:

Quick Time period Play [HIGH RISK]:

SQ $130c Aug 7 2020, buying and selling at $6.57 at time of writing. 41% Chance ITM. Earnings Aug 05 2020.

DKNG $40 Aug 21 2020, buying and selling at $3.50 at time of writing. 36.5% Chance ITM. Earnings Aug 13 2020.**21,690 open curiosity on this place, which might management 2.2 MILLION Shares**

BA $200c Oct 16 2020, buying and selling at $14.01 at time of writing. 31% Chance ITM.

Lengthy Time period Play:

SQ $160c Jan 15 2021, buying and selling $11.03 at time of writing. 23% Chance ITM

DKNG $45c Jan 15 2021, buying and selling $6.70 at time of writing. 28% Chance ITM

BA $240c Jun 18 2021, buying and selling $18.75 at time of writing. 20% Chance ITM

Last Be aware:

I’ll embody the inventory with essentially the most mentions on this thread in my subsequent evaluation submit. Will attempt to get to all of your questions this time. This reddit submit just isn’t funding recommendation – do thorough analysis earlier than ever investing.

Platform used is FindMarketPlays. Test my profile for a Demo. Enter your e mail right here to know when it launches: https://docs.google.com/varieties/d/e/1FAIpQLSeUTcj420FlNTpk4Ynozlbi3CuxhaIu6HJkyHLxAfZpFfG37w/viewform?usp=pp_url

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