When recommending a broker, we take into account different factors, like the broker's fees, trading platform, accessible markets, and how easy opening an account is. Now let's see what lies ahead before you can officially say that you are an Dropbox shareholder! ![]() You can follow him as on twitter and stocktwits.Ok, so you have decided that you'd like to buy Dropbox. As of this writing, he did not hold a position in any of the aforementioned securities. Nicolas Chahine is the managing director of. It is important to know that if they do, then I want to own the shares at a discount from here. I am betting that the perceived value in the stock will prevent sellers from taking too far. I merely need DBX stock to hold its support for the next few months. Today’s trade, although it would benefit from one, doesn’t need a rally to profit. Both setups have about the same odds of success and neither require a rally to win. The Alternate Bet: Sell the DBX OCT $23/$22 credit put spread, which would deliver over 30% in yield but with much smaller risk. For those who want to mitigate it, they can sell a spread instead. Selling naked puts carries big risk especially for a stock as frothy as DBX. Here I have a 75% theoretical chances that price will stay above my level. The Bet: Sell DBX OCT $22 put and collect $1.25 per contract to open. Instead of value, I use the technical setups to carefully choose risk. But this is a young company still so I won’t let that worry me for now. Since DBX still runs at a loss there is no tangible value against which to gauge my levels. Since its recent IPO the range is tight and that can serve as a strong base for a swing higher especially if macroeconomic headlines cooperate. Technically, Dropbox stock is still setting higher lows so, for now, the bulls have the momentum and onus is on the bears to break it. So instead of buying DBX shares without any protection, I use options where I can build a buffer zone between current prices and my level of risk. No, since I am not convinced of the slam dunk future prospects, I want to remain cautiously optimistic. So I think there is a bullish trade to set today. Nevertheless, the cloud is a large enough arena to leave room for most providers to prosper. Perhaps there is more to this partnership behind closed doors than I see. If they force me to pay then I would opt out of DBX. The CEO noted optimism behind the fact that they have 100 million “potential subs.” Well, this one of 100 million would never pay for DBX services as they stand. I use Dropbox because it’s free, but Google is my main service provider. The company CEO addressed the issues and said that they are partners with great companies like Microsoft Corporation (NASDAQ: MSFT) and Alphabet Inc (NASDAQ: GOOGL) and frankly this is puzzling to me. There were improvements but nothing jaw-dropping so there are no strong bids for the stock this morning. Wall Street wanted to hear clear evidence that paid users percentage of total revenue is increasing fast and they didn’t get it. ![]() Luckily for bulls, it came into the event up 12% on the year.ĭBX management beat on the top and bottom lines but there were some intricate sticking points. (NASDAQ: DBX) reported its first earnings report as a public company last night and the stock is falling 2% on the headline.
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