Friday, July 9, 2021

Didi: From an ‘IPO Gone Wrong’ to a Trade Gone Right?

 
July 9, 2021
 
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9 Moves to Make as OPEC, 10-Year Treasury Yields Spook Markets
Here we go again.

Financial media headlines have zeroed in on Tuesday's market pullback, throwing every possible rationalization they can think of at readers.

That morning, we started off with the failure of OPEC+ over the long weekend to reach a deal to increase crude oil production.

Curiously, former Secretary of Energy Dan Brouillette said on the network Tuesday morning that oil could "very easily" get to $100 per barrel.

He also suggested it was "equally possible" that oil prices could tank.

Here's What You Can Do
 
Didi: From an 'IPO Gone Wrong' to a Trade Gone Right?
I did it, traders. I bought Didi shares on Tuesday, and I know you think I've lost it. But hear me out: I don't think it's a terrible idea to be trading Didi stock. I just don't.

The Chinese ride-sharing company had its initial public offering (IPO) on Wednesday, June 30, and was listed at $14 a share. Leading up to the event, there were a couple of media talking heads saying to buy as much Didi as you can on the IPO... *cough, Cramer, cough*

But on Tuesday, the Uber competitor got hit with some bad news.

Coming out of the holiday weekend, the Chinese government announced it was launching an investigation into Didi and removing it from the app store. At face value, the government is saying it's over cybersecurity concerns.

U.S. investors aren't so sure, but I'm not here to get into politics. I just want to talk about trading.
Taking a Ride With DIDI
 
"Good Morning, I have learned so much from you all, Thank you all and have a nice weekend. Regards"

Srini R.











Call Options are an agreement that give the option buyer the right, but not the obligation, to buy a stock, bond, commodity or other instrument at a specified price within a specific time period. The stock, bond, or commodity is called the underlying asset. A call buyer profits when the underlying asset increases in price.

Call options are attractive to traders and investors because they provide a way to Leverage their capital for greater investment returns. A trader might buy a call option on the stock – instead of buying the stock outright. For example, an out-of-the money call option may only cost a few dollars or even cents compared to the full price of a $100 stock.
 
 
 
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