Facebook finally enters the digital currency space and with over 2 billion active monthly users this is certainly a game changer for the company. This is going to be a separate division and CaLibra run in Switzerland. With over 1.7 billion people without access to a bank, this is an alternate for those in emerging markets, or in countries where the native currency is easily devalued and subject to inflation.
Now allegedly the information from your digital wallet will not be used for ad targeting, and we know how ethical Facebook is so we can take it at Facevalue. Regardless this is good for the crypto space and will certainly bring a boost to Bitcoin, bringing validity to the space.
There is still some room to run and we have an overall target of 208. Currently we are in two trades, which we sent out to our members on Friday, going Long the 21st June Call 190 Strike @ 0.34 and the 21st June Call 200 Strike @ 0.16. We normally do not go Long Calls with our options strategy, but with the hype surrounding the release we weighed the Reward to Risk and decided to take the trade. We were looking for a 10-1 reward to risk and we have already surpassed this.
Now keep in mind these are rare trades and if you get one or two a year, you should be happy. It also requires the ability to take numerous small losses for in order to finally hit a home run. We do not recommend attempting to take these trades constantly as you will over time erode your trading capital. However when the market aligns we are open to taking these types of trades.
This is not an area to just jump on the train, and for those looking to build a position it would be frugal to either look for a consolidation and continuation, or let the market cycle and buy a pullback. Letting an existing trade run, is much different than jumping on a train that has left the station.
The other determining factor was the weekly chart which triggered a long from a position trade or short term investment.
These types of signals are rare but when you catch them the payoff can be great. Normally we would buy the stock outright or short PUTs on a signal like this, but we opted to try and catch the hype and momentum surrounding the release of their crypto currency Libra and go long Calls.
We are looking for Facebook to take out the previous high of 208 as they have First Mover Advantage in the space. This is a fundamental change and should provide Facebook with the opportunity for additional revenue from transaction fees, loans, and of course direct marketing through advertising. Not only will they know what restaurant you visited, they will know how you like your eggs!
From a moral and ethical standpoint I do not like Facebook. Their lack of being an ethical company, selling your information without your knowledge lacks integrity and ethics to say the least. However, I do not let personal biases enter my investing strategy, and will be looking to add for the long term as I do believe this is a game changer.
The ability for the un-banked to store currencies, loans, transfer money, and use for commerce will provide value in the long term for Facebook. After all with over 90 million businesses on Facebook who is not going to take Libra? I know our businesses surely will and if we can get additional insight into our customers that makes it worth taking by all means.
We are long Facebook and think this is a game changer for the space. The profits from this trade will go to buy the stock outright, putting us in a position of owning the stock at no risk.
Being open to trading various markets and multiple strategies provides opportunities and diminishes the impulse to force trades in one market. This is why we trade various markets, as there is always a trade somewhere and the stock market provides the most opportunities at any time.
Now allegedly the information from your digital wallet will not be used for ad targeting, and we know how ethical Facebook is so we can take it at Facevalue. Regardless this is good for the crypto space and will certainly bring a boost to Bitcoin, bringing validity to the space.
There is still some room to run and we have an overall target of 208. Currently we are in two trades, which we sent out to our members on Friday, going Long the 21st June Call 190 Strike @ 0.34 and the 21st June Call 200 Strike @ 0.16. We normally do not go Long Calls with our options strategy, but with the hype surrounding the release we weighed the Reward to Risk and decided to take the trade. We were looking for a 10-1 reward to risk and we have already surpassed this.
Now keep in mind these are rare trades and if you get one or two a year, you should be happy. It also requires the ability to take numerous small losses for in order to finally hit a home run. We do not recommend attempting to take these trades constantly as you will over time erode your trading capital. However when the market aligns we are open to taking these types of trades.
This is not an area to just jump on the train, and for those looking to build a position it would be frugal to either look for a consolidation and continuation, or let the market cycle and buy a pullback. Letting an existing trade run, is much different than jumping on a train that has left the station.
The other determining factor was the weekly chart which triggered a long from a position trade or short term investment.
These types of signals are rare but when you catch them the payoff can be great. Normally we would buy the stock outright or short PUTs on a signal like this, but we opted to try and catch the hype and momentum surrounding the release of their crypto currency Libra and go long Calls.
We are looking for Facebook to take out the previous high of 208 as they have First Mover Advantage in the space. This is a fundamental change and should provide Facebook with the opportunity for additional revenue from transaction fees, loans, and of course direct marketing through advertising. Not only will they know what restaurant you visited, they will know how you like your eggs!
From a moral and ethical standpoint I do not like Facebook. Their lack of being an ethical company, selling your information without your knowledge lacks integrity and ethics to say the least. However, I do not let personal biases enter my investing strategy, and will be looking to add for the long term as I do believe this is a game changer.
The ability for the un-banked to store currencies, loans, transfer money, and use for commerce will provide value in the long term for Facebook. After all with over 90 million businesses on Facebook who is not going to take Libra? I know our businesses surely will and if we can get additional insight into our customers that makes it worth taking by all means.
We are long Facebook and think this is a game changer for the space. The profits from this trade will go to buy the stock outright, putting us in a position of owning the stock at no risk.
Being open to trading various markets and multiple strategies provides opportunities and diminishes the impulse to force trades in one market. This is why we trade various markets, as there is always a trade somewhere and the stock market provides the most opportunities at any time.
