Slope initially began as a blog, so this is where most of the website’s content resides. Here we have tens of thousands of posts dating back over a decade. These are listed in reverse chronological order. Click on any category icon below to see posts tagged with that particular subject, or click on a word in the category cloud on the right side of the screen for more specific choices.
Trofim Lysenko: Intellectual Predecessor To Google CEO Sundar Pichai?
James Damore, a Harvard-trained systems biologist, was fired from Alphabet’s (GOOG), (GOOGL) Google unit on Monday, for posting a memo questioning the company’s ideological echo chamber, as he put it. Let’s talk about why this was an inauspicious day for Google.
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On Talk Markets Thursday, The Fly noted that Piper Jaffray had raised its price target on Tesla (TSLA) to $386 per share. Portfolio Armor is currently more bullish than Piper on Tesla; our site estimates shares could hit $413 in 6 months. Historically, actual returns have averaged about 0.3x our site’s potential return estimates though. (more…)
A Grim Pattern Repeats (more…)
Another 3x Bearish ETF Appears In Our Top-10
Happy New Year, Fellow Slopers.
I just saw a 3x bearish ETF (TZA) pop-up among the ten highest-ranking names on Portfolio Armor‘s daily ranking of optionable stocks and exchange-traded products by potential return net of hedging cost. Usually, it’s just stocks in that top-10, but the last time an ETP appeared there it was another bearish ETF, YANG. I posted about that here in November (“A Hedged Bet Against China“), and since then, YANG has gone on a decent run. Maybe something similar will happen with TZA? Just in case it goes pear-shaped, though, I’ve posted a hedge for it below. First, a quick look at how YANG has done since our November post on it.
Background On How We Calculate Our Ranking (more…)
Every trading day, Portfolio Armor ranks all of the hedgeable stocks, ETFs, and other exchange-traded products in the U.S. by its estimate of their potential return over the next six months, based on an analysis of price history and option market sentiment. Then it subtracts hedging costs, and ranks them all by potential return net of hedging costs, or net potential return. It’s a method of security selection we backtested 25,412 times over an 11-year time period during which it generated solid returns, on average.
On Thursday, the highest-ranked ETF, and the 7th-ranked security overall, was the Direxion Daily FTSE China Bear 3X Shares ETF (YANG), a triple-levered bet against China, with a potential return of 13.6% over the next six months.
As of Thursday’s close, you had a shot of capturing that potential return, while limiting your downside risk to 13.6% – and getting paid to hedge – by using the optimal collar below: (more…)
