A corporation can buy its own shares back from the market in a share repurchase. When management believes that a company's shares are undervalued, it may decide to purchase them back. The business either purchases shares directly off the market or gives its stockholders the choice to sell their shares to the business at a predetermined price. This procedure, also referred to as a share repurchase, lowers the number of outstanding shares. Investors frequently believe that buybacks will enhance the share price since they reduce the supply of shares. This presupposes that the measure won't reduce interest in the shares. In addition, a company repurchasing its own shares indicates a conviction in the stability and continued growth of its own business.
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