Market On Open, Thursday 28 August
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And The Winner Is ...
by Alex King, CEO, Cestrian Capital Research, Inc
… Ken Griffin. Again!
The big dog, Nvidia, reported earnings yesterday. We wrote it up, no paywall, here:
Alex King
Overall a rock solid set of earnings, you can nitpick at this or that and no doubt the Internet will be having a meltdown about something or other in its numbers. It will be determined that [ …. insert topic here … ] is VERY SUSPICIOUS AND POSSIBLY A SCAM and also that [ … insert second topic here … ] is a MASSIVE OPPORTUNITY. Whatever. Solid numbers, growth slowing from a huge level to just a very very big level, margins holding up, balance sheet bigger than most any country on a net cash basis.
And the stock reaction? “Meh”.
Know who wins from “Meh”?
Bulls? No.
Bears? No.
Option sellers, that’s who. With a tiny move in the stock vs. the move foretold by options pricing ahead of the event, Messrs. Griffin and co who have been happily selling puts and calls to every genius out there? They get to keep most of that premium for themselves. Again! This is why Big Money stays big money, because it feeds off of small money by feinting this way and that and then this away again, before quietly picking pockets before the mark has even noticed what is going on.
If you’d like to play options the way Ken Griffin plays options, not the way Chad plays options, I suggest you take a look at our extremely cold, calm, methodical, nay professorial options service. It uses statistics, not opinion or emotion, to help you make money. You judge for yourself if you think that’s a good approach. But first, ask yourself this. What would Ken Griffin do?
You can learn all about our options work, here.
Now let’s get to work. Equities, bonds, volatility, crypto and key sector analyses follow.