Market Recap 05/05/2019

US On Wednesday, following the FED committee’s meeting, Jerome Powell announced that the US central bank is leaving interest rates unchanged by saying that “we don’t see a strong case for moving (interest rates) in either direction”. Although the United States showed an impressive GDP growth in the first quarter of 2019, investors were expecting […]

Greexotics – A First Step in the Land of Exotic Derivatives Greeks – Part 2

Following the first article of the series in which we analyzed the greeks of a Binary option, in this second part of the series we would like to introduce Asian options and their greeks. Asian options are part of a broader macro-class of exotic derivatives named Path Dependent Derivatives; in fact exos can be divided […]

Wind of change: VIX futures strategies

Introduction 2018 will be remembered by many investors as a difficult year. In sharp contrast to 2017, when S&P500 was performing spectacularly (+19.4% YoY), 2018 brought a bitter disappointment to many. Not only in terms of absolute performance (-7% YoY), driven heavily by the impressive sell-off in the last quarter of the year, but also […]

Investors’ appetite: plant-based meat producer skyrockets on day of IPO

Beyond Meat (NASDAQ: BYND) – expected market cap as of 03/05/2019: $1.5b Introduction On May 2nd, Beyond Meat, producer of plant-based meat substitutes, went public on the NASDAQ. The firm priced its initial public stock offering at 25$ per share, after strong demand encouraged the company to raise the price range from 19$ – 21$ […]

The IPO Bonanza (Part 2): Investor Appetite Pushes Unprofitable Unicorns to New Heights

The Ride of Unicorn IPO’s As big tech firms such as Uber, Lyft, Pinterest and Airbnb go public, a decade of innovations is being harvested. As this rush of technology offerings set out to bring new wealth to Silicon Valley, the mystery of increasing investor appetite for companies with negative earnings becomes more profound. This […]

Big Oil strikes again: Occidental’s bid to acquire Anadarko for $57 billion

Anadarko Petroleum Corporation (NYSE: APC) – market cap as of 29/05/2019: USD 36.61bn Occidental Petroleum Corporation (NYSE: OXY) – market cap as of 04/05/2019: USD43.34bn Intro On April 29, 2019, US oil and natural gas producer Anadarko was on course to accept a takeover offer from its national rival Occidental, which gatecrashed an already established […]