For dealers in government securities, a repurchase agreement (repo) is a type of short-term loan. In a repo, a dealer offers investors government assets for sale, typically overnight, and then buys the securities back the next day at a slightly higher price. The overnight interest rate is implicit in that modest price difference. Repos are often used to raise quick money. They are frequently used in open market operations by central banks as well. It is a repurchase agreement (repo) for the party purchasing the security and promising to sell it in the future; it is a reverse repurchase agreement (rrpa) for the party selling the security and promising to repurchase it in the future.
The market has been range bound for the last few weeks with volatility on the decline, and earnings all over the place. So where to go to look for a trade? Nike has already had Earnings and is near a low of the year, so seems like a good option. As a contrarian that can mean only one thing to me: I have to make a trade with the assumption it will go up from here over the next 45ish days. We will do that by making a Long Call Vertical trade to bet that it starts to head up over the next couple months. For more on my trading and how to join me in real time, see below. Watch the video to get the details. Kal Trading Risk Disclaimer All the information shared in this video is provided for educational purposes only. Any trades placed upon reliance of SharperTrades.com are taken at your own risk for your own account. Past performance is no guarantee. While there is great potential for reward trading stocks, commodities, options and forex, there is also substantial risk of loss. All tr