Options (part 1) George Beyrouthi s editorial / education series. At FS Securities, we trade options as part of our strategies.

Transcription

1 George Beyrouthi s editorial / education series Options (part 1) At FS Securities, we trade options as part of our strategies. Why we like options? From our course that we run frequently around Australia. If you need to learn about options, please call the office. More tomorrow

2 DATA summary DOW 19, (63.28) -0.32% If you wish to receive our reports on a daily basis, please visit our website at and subscribe. S&P500 2, (4.88) -0.21% NASDAQ 5, (16.16) -0.29% It is important to recognise that not every recommendation will suit everyone. You need to determine what your risk appetite is before you trade. E-STOXX 50 3, (21.24) -0.64% FTSE 100 7, % DAX 11, (125.13) -1.07% NIKKEI , (229.97) -1.19% HANG SENG 22, (106.33) -0.46% SHANGHAI 3, (16.88) -0.51% ASX200 5, (4.63) -0.08% ASX200 Futures 5, % GOLD (US$/oz) 1, (1.10) -0.09% SILVER (US$/oz) (0.03) -0.20% COPPER (USc/lb.) % Brent (US$/brl) % CRUDE (US$/brl) % WHEAT (US/bu.) % SOYBEAN (US/bu.) 1, % CORN (USd/bu.) % Do you need a hand? Please call us. We have a lot of material in our daily report. You will find: - Overnight summary - Review on Gold, Silver and Crude markets - Our recommendations cover: o US market o Commodities o FX o ASX Equities - We do a full analysis on one stock (our pick) - Stats showing the % change over two weeks - Upcoming Dividends - A lot more Our predictions? What I predicted (at end May 2016): - XJO (ASX 200) has about 300 points further to go (up) between now and December Next 3 months (at end May 2016) - XJO (ASX 200) Resistance around 5600 (+300), Support around 4950 (-300) - Gold to trade between 1200 and 1300 US/Oz - The Australian dollar to remain weak and hover around the 70 and 75 US cents COCOA (US/mt) 2, % COTTON (USd/lb.) % COFFEE 'C'(USd/lb.) % FCOJ-A (USd/lb.) % LIVE CATTLE(d/lb) (1.65) -1.39% EUR-USD % USD-JPY (0.6800) -0.59% GBP-USD (0.0044) -0.36% AUD-USD AUD-EUR % AUD-GBP %

3 0.4% but the broader S&P500 was al most steady and slightl y down. Offshore Markets & Businesses Overnight and from around the globe we start with Wall Street where U.S. stocks were slightly lower. Global announcements Updated on Friday, January 13, 2017 At the closing bell, the Dow Jones Industrial average closed at 19,891 a daily fall of 63 points that is 0.32 %, the broader S&P500 index was down 0.2 % at The NASDAQ technology index was down 0.3% at Over the full week, the D ow Jones was up In Europe, the Stoxx 50 index, which comprises most major European markets, was down 0.64%. In Frankfurt, the DAX was down 1.07% and finished at 11,521. In London, the FTSE 100 index was up 0.03% at In Asia in Japan, the Nikkei Index was down 1.19 % 19,134 and In China the Shanghai index was down 0.51% and closed at On the commodities, Gold 1,195US/Oz up 5$ from this time Y F. Silver was at $US/Oz down 5 cents. US crude Oil at $/barrel up 60. Iron ore important for our miners was up 0.7 %, it closed at US / Tonne. Over the full week Gol d was down $23 or 2%, Sil ver was down 4.5% and Cr ude Oil was up 1.2% On the currencies, The Aussie Dollar this morning will exchange for 74.9 US cent. It will give you 70.5 Euro cents and 61.5.British pence. These are intra banks rates. At the closing bell yesterday, our market went down 5points or 0.08 %. It finished at In the banking sector, ANZ was up 4 cents or 0.13 % and closed at Commonwealth Bank was up 3 c or 0.2% to and NAB was up 11c or 0.8 % to WBC was down 3 or 0.7 % to Best performer amongst the leaders other the four major banks CIM up 1.4% and worst performer WFD down 1.59%. Over the full week the best performer amongst the leaders CIM up 2.6 % and worst performer NCM down 11.6 %. Announcements that can affect our market and overseas trading, China s trade data. The ASX 200 futures contract if any indication is predicting a rise of 7 points when the market re-opens. Yahoo, Bloomberg, SMH, ninemsn and AFR

4 FS Securities Picks On 12/01/2017: Woolworths (WOW) On 10/01/2017: Newcrest Mining Ltd (NCM) On 06/01/2017: South32 (S32) On 04/01/2017: Santos Limited (STO) On 03/01/2017: Telstra Corp Ltd (TLS) On 21/12/2016: Fortescue Metal Group Limited (FMG) On 20/12/2016: Sydney Airport Holding Limited (SYD) On 19/12/2016: AMP Limited (AMP) On 16/12/2016: Wesfarmers Limited (WES) On 19/09/2016: BNP Billiton (BNP) On 20/07/2016: SMS Management and Technology (SMX) On 20/06/2016: Australian and New Zealand Banking Group Ltd (ANZ) On 17/06/2016: Woolworths (WOW) On 08/06/2016: Flight Centre (FLT) On 22/01/2016: A2 Milk (A2M) On 19/11/2015: Sedgman Ltd (SDM) On 20/10/2015: Metals X Limited (MLX) On 16/10/2015: Telstra Corporation Ltd (TLS) On 14/10/2015: Evolution Mining Ltd (EVN) On 12/08/2015: Telstra (TLS) On 21/05/2015: CSR Limited (CSR) Note: the shown picks are not necessarily trades that FS Securities are currently trading. They are offered as suggestions only. Please check with your broker first before trading.

5 Indices and Commodities GOLD: Gold prices surged above $1,200 an ounce to the highest in seven weeks on Thursday as the dollar slumped after U.S. President-elect Donald Trump failed to mention fiscal stimulus in his first news conference. Analysts warned, however, that gold's revival since mid- December may be running out of steam because the dollar was likely to rebound once Trump moves forward with his economic plans. Spot gold was up 0.40 percent at $1, per ounce by 2:57 p.m. ET, after touching a high of $1,206.98, it s strongest since Nov. 23. U.S. gold futures fell 0.02 percent to $1,196.4 per ounce. (Source: Bloomberg, Yahoo and CNBC) SILVER: Spot silver rose 0.16 percent to $ an ounce after hitting a four-week high of $ (Source: Bloomberg, yahoo and CNBC) CRUDE OIL: Oil prices rallied for a second day on Thursday, supported by reports that key members of OPEC were starting to cut production and by forecasts of strong demand growth in China. U.S. crude ended Thursday's session up 76 cents, or 1.5 percent, at $ Brent crude futures were up 98 cents, or 1.8 percent, at $56.08 a barrel by 2:38 p.m. ET (1938 GMT). (Source: Bloomberg, Yahoo and CNBC) *Disclaimer: The information in the Market Commentaries was obtained from sources believed to be reliable, but we do not guarantee its accuracy. Neither the information nor any opinion expressed therein constitutes a solicitation of the purchase or sale of any futures or options contracts.

6 Advances, Declines and Volume Stocks to watch (source SMH and AFR) ASX weekly market advances and declines BHP Billiton. Investors await the miner's latest results and a ` decision on its dividend policy. recommendations for US market Commodities and FX ASX sectors and equities FS Securities details stock picks Ask for a copy if you would like to see the list.

7 Gainers and Most Active by volume NOTES: ASX stocks show the daily changes. if shown in red, they indicate a fall

8 Sectors Performance By looking at the above table readers will notice where the direction of the market has been on the day. Last from low: Blue = closed in the top half of the day s range. Net Change is the daily movement in points. % Change represents the daily movement in %.aud

9 WEEK ON WEEK CHANGE (and over two weeks as well) OVERSEAS INDICES, FX AND COMMODITIES

10 WEEK ON WEEK CHANGE (and over two weeks as well) OVERSEAS INDICES, FX AND COMMODITIES

11 WEEK ON WEEK CHANGE (and over two weeks as well) AUSSIE MARKET

12 WEEK ON WEEK CHANGE (and over two weeks as well) AUSSIE MARKET

13 Mini charts - Commodities and US markets 22/12/2016 THE GRAPHS SHOW HOW FROM AN INDEX OF 100 SOME 52 WEEKS AGO THE VARIOUS INDICES OR COMMODITIES HAVE MOVED.

14 Sectors THE ABOVE GRAPHS SHOW HOW FROM AN INDEX OF 100 SOME 52 WEEKS AGO THE VARIOUS ASX SECTORS HAVE MOVED.

15 Major stocks

16 Upcoming Dividends by date 1 Ex Div Date Symbo l Name Fran ked % Current Div Amount Div Rate Per Share Div Yield % 2 9/01/2017 HNG HGL LIMITED Final 3 12/01/2017 TGH TEGEL GROUP HOLDINGS LIMITED Interim 4 17/01/2017 AGD AUSTRAL GOLD LIMITED Interim 5 18/01/2017 CUP COUNTPLUS LIMITED Interim 6 1/02/2017 WIC WESTOZ INVESTMENT COMPANY LIMITED Interim 7 1/02/2017 OZG OZGROWTH LIMITED Interim Dividends are payments made by a corporation to its shareholder members. It is the portion of corporate profits paid out to stockholders. [1] When a corporation earns a profit or surplus, that money can be put to two uses: it can either be re-invested in the business (called retained earnings), or it can be distributed to shareholders. There are two ways to distribute cash to shareholders: share repurchases or dividends. [2][3] Many corporations retain a portion of their earnings and pay the remainder as a dividend. Last Type

17 Upcoming Dividends by % Ex Div Date Symbo l Name Fran ked % Current Div Amount Div Rate Per Share Div Yield % 2 18/01/2017 CUP COUNTPLUS LIMITED Interim 3 1/02/2017 WIC WESTOZ INVESTMENT COMPANY LIMITED Interim 4 9/01/2017 HNG HGL LIMITED Final 5 1/02/2017 OZG OZGROWTH LIMITED Interim 6 12/01/2017 TGH TEGEL GROUP HOLDINGS LIMITED Interim 7 17/01/2017 AGD AUSTRAL GOLD LIMITED Interim Dividends are payments made by a corporation to its shareholder members. It is the portion of corporate profits paid out to stockholders. [1] When a corporation earns a profit or surplus, that money can be put to two uses: it can either be re-invested in the business (called retained earnings), or it can be distributed to shareholders. There are two ways to distribute cash to shareholders: share repurchases or dividends. [2][3] Many corporations retain a portion of their earnings and pay the remainder as a dividend. A dividend is allocated as a fixed amount per share. Therefore, a shareholder receives a dividend in proportion to their shareholding. For the joint stock company, paying dividends is not an expense; rather, it is the division of after tax profits among shareholders. Retained earnings (profits that have not been distributed as dividends) are shown in the shareholder equity section in the company's balance sheet - the same as its issued share capital. Public companies usually pay dividends on a fixed schedule, but may declare a dividend at any time, sometimes called a special dividend to distinguish it from the fixed schedule dividends. Dividends are usually paid in the form of cash and shares in the company (either newly created shares or existing shares bought in the market.) Further, many public companies offer dividend reinvestment plans, which automatically use the cash dividend to purchase additional shares for the shareholder. Source: From Wikipedia, the free encyclopaedia. Last Type

18 Real Estate, are you in or out? Did you know that FS Securities can help you with any Real Estate needs? Why deal with us? Because we can help you provide a bridging loan at a reasonable rate and provide you which choices in properties across Australia for investment. We learnt that in Sydney the property median price has escalated by 12% above the all-time high level. In Melbourne it has moved up by 8 to 9% above the all-time high. In Queensland the median price is still 7 or 8% below the all-time high. RP Data Rismark figures recently showed Sydney home prices rose 2.5 % last month and 5.2 % in the last quarter. Melbourne also rose 2.4 % in a month and 5 % in the quarter. Please go to our website: for the full report and trading positions. For further information call us to discuss. (07) OR Please see our disclaimer on back page. GENERAL ADVICE DISCLAIMER this document has been prepared for the general information of investors and does not take into account the investment objectives, financial situation and particular needs of any particular person. Persons intending to act on information in this document should seek professional advice to confirm that the investments or strategies mentioned are appropriate in the light of their particular investment needs, objectives and financial circumstances prior to taking any action. transmission cannot be guaranteed to be secure or error free and there is a risk messages may be corrupted, intercepted or lost in transmission. Therefore we do not accept liability for any viruses, errors or omissions in the contents of this message or attachments which arise as a result of transmission. Statements contained in this are general only and do not take into account the particular needs, objectives, financial circumstances or investment preferences of any person. George Beyrouthi is an Authorised Representative (AR# ) of FS Securities (QLD) Pty Ltd AFSL# Meanwhile, you can call us and we can tell you how options can work for you with THE RIGHT STRATEGY and with the right tools, education and discipline.

19 Can you trade the market if you are not well informed? Other reports on our website: To subscribe, click the following link: Please go to our website: for the full report and trading positions. For further information call us to discuss. (07) OR Please see our disclaimer on back page.