http://www.free-powerpoint-templates-design.com

Option God

Course instructor: Vikram Iyer

Agenda

05

Appendix Part

More data to prove our idea

Group members

1. Tianyun Shi (Warren)
2. Yingjie Jiang
3. Yichu Zhao
4. Kai Zhao
5. Shibin Liu
6. Wanqi Zhang
7. Tianlang Liu
8. Wei Meng

Long Call

Chevron Corporation (CVX)

Infographic Style

OPEC

​

OPEC to cut oil production by 2 million barrels per day to shore up price, defying US pressure

Published Wed, Oct 5 2022

OPEC is an intergovernmental

organization of 12 countries

OPEC is a group of some

world’s most largest oil producer

OPEC aim to influence the global oil price & maintain a stable oil market

What’s mean by that?

Fundamental Analysis

• Q2 2022

• Q1 2022

• Q4 2021

Sales & other operating revenue: $45861 million - $63508 million

Operating expense: $5507 million - $6357 million

• Q3 2022

Long-term debt: $31113 million - $21420 million

Cash & cash equivalent: $5640 million - $15164 million

​

Technical Analysis

• Days Moving Average

20/50/100/200 EMA find buy & sell patterns of investor

• Trade Volume

measure investor sentiment

• Support & Resistance Level

measure leverage

Reverse Protective Put

Netflix Inc (NFLX)

News & Details

• Almost all plans rise $2 per month
• The basic plan with Ads & not allow user download the video
• Disney continue add subscriptions & low down its market spending to better manage cost

Short the stock &

Short a put

​

BUY

SELL

Fundamental analysis

Netflix (NFLX) has taken a commanding lead in the streaming video market but its growth has hit a wall.

Fundamental analysis

Netflix (ticker: NFLX) added 2.4 million net new subscribers in the third quarter, beating its own expectations for 1 million new paid members, and ending a run of two quarters of subscriber losses.

50 days moving average is larger than

9 days moving average

Technical Analysis

NASDAQ and S&P 500

On November 2nd, both indices where netflix is located fell sharply, which is why we believe that the fall of netflix has not stopped yet.

DOWN

We use broad economy trends to forecast the performance of individual stock

Covered Call

American Airline Group Inc (AAL)

News & Details

• The World Travel and Tourism Council (WTTC) predicts that the U.S. tourism industry may rebound strongly this year.

AAL

• Continuous profitable quarter of AAL since the onset of the pandemic. (2022 Q3)

• Merge with Air Line Pilots Association (ALPA) which represents pilots at major U.S. carriers United Airlines and Delta Air Lines.

Covered Call

American Airline Group Inc (AAL)

OPTION

STOCKS

4723M

1807M

2185M

3781M

BUY?

SELL?

AND

2021: start of the recovery

2022: capacity is projected to grow at 47%

Long term forecast is positive (Flight trend to increase after China lockdown)

AAL

Fundamental Analysis

Worldwide Passenger Capacity Growth Trends

2020 post

covid

2021

2022

Number of scheduled passengers by global airline

2020 pre

covid

AAL Fundamental Analysis

Net income, profit margin, and EPS have started to turn positive from Q2 2022

AAL Fundamental Analysis

• AAL: best performance on (ttm) ROE among competitors → good sign to hold AAL stock
• AAL: negative profit margin last year → risk still exists → use covered call to limit potential losses

Technical Analysis

Indicators:

• Moving average

50-day, 14-day, 7-day

• Relative strength index RSI (53)

Short term:

• 14-day MA crossed 50-day MA from bottom to top
• 7-day line was always upper than 14-day line
• RSI: This stock was not oversold or bought

Long term:

• Strike price ($18) is likely to be the average price after 2019
• AAL will be in good condition as people’s life go back to normal
• Constant profit will be gained through covered call in the next year.

Thank You

APPENDIX

Add Text

AAL domestic transport

CVX sales & expense

oil daily demand

AAL asset & liabilities

AAL early income

US GDP from transportation