馃幍 SPOTIFY TECHNOLOGY: DERIVATIVES TRADING 馃幍
Spotify Inc is an enterprise (SPOT) is a music streaming service company. A quick view about it is:
Pros:
- Strong revenue growth (this growth is being driven by both premium subscriptions and ad revenue)
- Increased gross margin (this is a good sign that the company is controlling its costs and generating a healthy profit margin)
- Positive free cash flow (this could be a good sign that the company is generating enough cash to fund its operations and invest in growth)
- Strong operating leverage (this is a good sign that the company is able to generate more profit as its revenue grows)
- Revenue diversification (this is a good sign that the company is less reliant on any one source of revenue)
Cons:
- Increased marketing spend (this could put pressure on its margins in the future)
- Limited international presence (this could limit its growth potential in the future)
- Competition from other streaming services (SPOT faces increasing competition from other streaming services, such as Netflix and Disney+. This could pressure its growth in the future)
- Risk of regulatory changes (could be affected by changes in regulation, such as new rules governing data privacy or content moderation)
- Increased debt levels (debt levels have increased in recent quarters. This could put pressure on its financial performance in the future)
Levels:
The next support zone is at ± $127 USD and the great support is at ± $70 USD. The next resistances zones is at ± $182 USD, ± $210 USD and ± $246 USD. The ± $155 USD zone is an indifference price, a optimal target could be ± $220 USD and all above ± $297 USD could be highly speculative.
Example:
In that sense, a options trading plan is:
- Call [sell]: $300 USD
- Cal [buy]: $180 USD
- Put [sell]: $100 USD
Risks:
A minor risk is that the price does not exceed $180 USD, but could be compensated with the profit of the first "call". The worst risk is the price exceeds $300 USD or that the price will fall severely below $100 USD for much time. For this, the "Call at 180" will help in the first scenario, and in the second, the investor will need to start an accumulation phase. By the moment, the probabilities are acceptable for sector [ https://twitter.com/JJoelPadilla/status/1675346269609263104?s=20 ]
The best analysis is yours!
J. Joel Padilla
https://www.linkedin.com/in/joelpadilla/recent-activity/
https://jjplindex.blogspot.com/
https://jjoelpadilla.wixsite.com/jjpl-index
Copyright: Joel Padilla 2023
Pros:
- Strong revenue growth (this growth is being driven by both premium subscriptions and ad revenue)
- Increased gross margin (this is a good sign that the company is controlling its costs and generating a healthy profit margin)
- Positive free cash flow (this could be a good sign that the company is generating enough cash to fund its operations and invest in growth)
- Strong operating leverage (this is a good sign that the company is able to generate more profit as its revenue grows)
- Revenue diversification (this is a good sign that the company is less reliant on any one source of revenue)
Cons:
- Increased marketing spend (this could put pressure on its margins in the future)
- Limited international presence (this could limit its growth potential in the future)
- Competition from other streaming services (SPOT faces increasing competition from other streaming services, such as Netflix and Disney+. This could pressure its growth in the future)
- Risk of regulatory changes (could be affected by changes in regulation, such as new rules governing data privacy or content moderation)
- Increased debt levels (debt levels have increased in recent quarters. This could put pressure on its financial performance in the future)
Levels:
The next support zone is at ± $127 USD and the great support is at ± $70 USD. The next resistances zones is at ± $182 USD, ± $210 USD and ± $246 USD. The ± $155 USD zone is an indifference price, a optimal target could be ± $220 USD and all above ± $297 USD could be highly speculative.
Example:
In that sense, a options trading plan is:
- Call [sell]: $300 USD
- Cal [buy]: $180 USD
- Put [sell]: $100 USD
Risks:
A minor risk is that the price does not exceed $180 USD, but could be compensated with the profit of the first "call". The worst risk is the price exceeds $300 USD or that the price will fall severely below $100 USD for much time. For this, the "Call at 180" will help in the first scenario, and in the second, the investor will need to start an accumulation phase. By the moment, the probabilities are acceptable for sector [ https://twitter.com/JJoelPadilla/status/1675346269609263104?s=20 ]
The best analysis is yours!
J. Joel Padilla
https://www.linkedin.com/in/joelpadilla/recent-activity/
https://jjplindex.blogspot.com/
https://jjoelpadilla.wixsite.com/jjpl-index
Copyright: Joel Padilla 2023
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