Shares of this Brazilian electronic commerce juggernaut looked attractively inexpensive a few months ago, but have since fallen significantly further. Its woes stem from a weakening currency, interchange fee pressures, covid and now a recent FBI raid of its major POS terminal providers (in relation to cyberattacks). However, the business continue to strengthen and the market opportunity remains huge (lots of room for continuing growth). Contrarians may consider purchasing shares outright, however in this report we share an attractive income-generating options trade. The trade not only puts attractive upfront cash in your pocket (that you get to keep no matter what), but it also gives you a shot at picking up shares of this highly attractive business at an even lower price (if the shares get put to you before the contract expires in less than 1 month. We believe this is an attractive trade to place today (and potentially over the next few trading sessions) as long as the price of the underlying shares doesn’t move too much before then.
New Purchase: Powerful Fintech Play, Lots to Like
We just initiated a new position in our Disciplined Growth Portfolio. The company is a powerful fintech player that offers an attractive combination of growth, value and profits. More specifically, the company is gaining share in a large (and rapidly expanding) market space, it has a high revenue growth trajectory, a broadening ecosystem, and unlike many high growth players—this one is actually growing profitably (a good thing in this case!). Of course there are risks (including covid challenges, non-US growth and competition), but overall the opportunity is highly attractive, and we just added shares.
New Options Trade: Very High Upfront Income, Bullish Vertical Put Spread
This report reviews an attractive high-income-generating options trade on a compelling long-term fintech business (Warren Buffett and Cathie Wood are both shareholders). The trade generates attractive upfront premium income, and gives you a shot at picking up shares of this attractive business at a lower price. We believe the trade is an attractive one to place today, and potentially over the next few trading sessions, as long as the price of the underlying shares doesn’t move too dramatically.
New Options Trade: High Upfront Income, Bullish Vertical Put Spread
Warren Buffett’s Berkshire Hathaway has a large position in this attractive non-US fintech company. And this year’s volatility and share price softness has given rise to an attractive high-income-generating options trade. The trade strategy sounds complex (i.e. “bullish vertical put spread”), but it’s not. It puts attractive upfront premium in your pocket today, it gives you a chance to pick up shares of this attractive stock at a lower price, and it gives you a little insurance on the downside (i.e. your max loss is limited). We believe this is an attractive trade to place today—and potentially over the next few trading sessions—as long as the underlying share price doesn’t move too dramatically before then.
Attractive Long-Term Upside, Earnings Announcement Tonight
This digital payments fintech company is growing rapidly and experiencing improving margins. It also has a lot more room to grow as the total addressable market is large and the company offers an expansive line of valuable solutions. The share price has been volatile (as high-growth stocks in general have sold off in recent months), but the business remains on a healthy trajectory, and it announces quarterly earnings today after the market closes. In this report, we review the business, competitive strengths, growth opportunities, financial health and conclude with our opinion on investing.