company performance

The global tourism industry has faced unprecedented challenges during the COVID-19 pandemic and companies in the sector have suffered significant losses. However, as the world recovers and travel restrictions finally come to an end, the industry is now poised for a resurgence. A successful summer season on the horizon brings new hope to the afflicted industry. As travel resumes, equity prices in the tourism and travel sector are expected to show positive momentum. The market reaction to the reopening of borders and the resumption of international travel is likely to be reflected in the share prices of companies in the industry.   While the industry is on track to recover, it is important to note that reaching pre-pandemic levels may not happen immediately for all companies. The losses incurred during the pandemic have had a significant impact on the financial position of many tourism enterprises. Some companies are still striving to recover losses and restore financial stability, but here’s a look at the prospects for individual sectors of the tourism industry:   Airlines: Companies such as Lufthansa and other major airlines have been hit hard by the pandemic. As demand for travel increases, airline shares are expected to rise. However, the recovery of airline inventories will depend on various factors, including vaccination rates, travel regulations and consumer confidence in air travel.   Online booking platforms: Platforms such as Airbnb and Booking.com are likely are likely to benefit from the resurgence of the travel industry. As travelers start planning their trips, the demand for online booking services is expected to increase. Hence, these platforms may see their stock prices rise as they gain momentum.    Hotels: The hospitality sector has faced major challenges during the pandemic. As travel resumes, hotels are expected to reopen. However, the pace of recovery may vary depending on factors such as location, travel restrictions and the ability to meet changing consumer preferences, such as an increased focus on hygiene.    In terms of the impact of inflation on the travel industry, rising prices have the potential to affect both the market and share prices. Higher prices may lead to higher spending on travel-related services, which may affect consumer behavior and demand. Companies operating in the travel industry will need to carefully manage their pricing strategy to balance profitability and affordability for customers.   When it comes to investment opportunities, it is extremely important to do a thorough research and consider various factors before making an investment decision. While the share prices of some travel companies may have risen significantly, there may still be room for growth. Further development of stock prices in the near future will depend on factors such as the pace of the global recovery, travel trends, company performance and market dynamics against the backdrop of Fed policy.

In the past few months, the company has consistently exceeded our expectations regarding the monetization of 'Unsolved.' Apart from the impressive revenue growth, the most surprising factor for us has been the shift in the trajectory of marketing expenditures. Through further improvement in KPIs of this application, despite seasonally unfavorable market conditions (high CPI), the company continues to increase user acquisition investments simultaneously maintaining consistent expected returns.       Keeping the above in mind, we anticipate that when user acquisition costs begin to decline (likely around end of the 3rd or beginning of the 4th quarter), the potential of the implemented changes in the application should be further unlocked, resulting in its continued dynamic progression of results. Additionally, we would like to point out that the most significant changes regarding 'Unsolved' are still ahead of us. As we indicated in our previous recommendation, the new metagra should prove to be the element that will contribute the most to the improvement of the application's KPIs. We expect to see the initial effects of these changes around 2H'24. The production of the studio's second most important project (a new RPG game) is proceeding according to schedule.   A technical soft launch of the game was conducted during 2Q'23, which received positive reviews from testers. We anticipate that this project will make its market debut in 2024. Despite the recent dynamic increase in the stock price, our estimated results for the 2023-24 period imply an attractive multiple valuation for the company (adjusted P/E at the level of 8-10x). Furthermore, the decrease in the risk-free rate also has a positive impact on the valuation. With this in mind, we maintain our BUY recommendation for Artifex Mundi, while simultaneously raising the target price to 22,8 PLN per share, which is 30% above the current market price.

 In our new series "from zero to hero" we explain option techniques and strategies and make them accessible for everybody. This article specifically provides an introduction to selling options, often called premium selling and how to make money with them, as well as the associated risks involved. From zero to hero: selling options Introduction In our previous from-zero-to-hero guide, we unraveled the intricacies of buying options, laying a foundation in the vibrant world of options trading. Yet, as the saying goes, it takes two to tango. While buying options is one side of the story, there is another pivotal character in this narrative — the seller.   So, who are these sellers? Could you potentially step into their shoes? How does selling options work, and what does it entail in terms of risks and rewards?   In this guide, we will delve into the other half of the options trading dance — selling options. It's about time we answer these pressing questions, helping you explore the avenues of generating potential profits as an option seller, while understanding the ropes to manage the associated risks adeptly.   Basics of selling options What does it mean to sell options? Ever wondered who is on the other side of the transaction when you buy an option? It's the options sellers, individuals or entities selling you the rights that come with the option contract. When you sell an option, instead of acquiring the right to buy or sell an asset at a predetermined price, you are granting that right to someone else. Essentially, you are creating an options contract and selling it to a buyer in exchange for a premium - a fee that the buyer pays upfront.   Why sell options? Selling options can be a strategic move to generate income. Each time you sell an option, you receive a premium from the buyer, which is yours to keep, regardless of whether the option gets exercised. Here are some reasons why investors choose to sell options:   Income through premiums: Regularly selling options can create a consistent stream of income from the premiums collected. Potential ownership at a lower price: If there's a particular stock you have your eye on and would consider buying at a reduced price, selling put options might be a strategy to explore.   Types of options you can sell: call and put  You've learned about buying call and put options in the previous guide; now let's flip the perspective and explore the inverse strategy:   Selling a Call Option: When you sell a call option, you're essentially taking the opposite viewpoint of a call buyer, who is bullish on the stock. Let's take an imaginary company, BigCompany, as an example, which is currently trading at $50 per share. You believe that in the short term, the stock will not appreciate significantly, and therefore you decide to sell a call option with a strike price of $55 for a premium of $1.50 per share (or $150 in total, as one contract typically controls 100 shares).In this case, your break-even point at expiration is $56.50, which is obtained by adding the premium received to the strike price ($55 + $1.50). You would retain the entire premium if the stock price remains below $55. However, if the stock price surges above $56.50, you'd start experiencing losses, since you would be obligated to sell the shares at $55, even though they are trading at a higher market price.Below is a screenshot that visualizes this concept (it uses other prices, but the principles remain the same). In bullets 1, 2 and 3 the outcome of selling the call is profitable, only bullet 4, a steep rise contradictory to the assumption, is negative.   2. Selling a Put Option: Conversely, selling a put option means you're taking a stance contrary to a put buyer, who is bearish on the stock. Going back to our imaginary BigCompany scenario, if you speculate that the stock will not decrease much from its current $50 price point, you might choose to sell a put option with a strike price of $45, earning a premium of $1.50 per share or $150 in total. Here, your break-even point is $43.50, which is the strike price minus the premium received ($45 - $1.50). You are essentially betting that the stock won't fall below $45 before the option expires. If the stock remains above $45, you get to keep the entire premium, which turns into your profit. Conversely, if the stock falls below $43.50, you will incur losses as you have a commitment to buy the shares at $45 each, even if the current market price is lower.       Below is an screenshot, showing the concept of selling a put (using different prices, same principles). In bullets 1, 2 and 3 the outcome of selling the put is profitable, only bullet 4, a steep decline against your assumption, is negative for your P&L.       In both scenarios, selling options allows you to earn a premium, which can either cushion potential losses or enhance your profits if the market moves sideways or slightly in your anticipated direction. It introduces a strategy where you can benefit from the market's stability or slight movements, contrasting with buying options, which generally necessitates substantial price swings to turn a profit.       How to profit and manage risk while selling options   Making money through premium collection The primary way to profit from selling options is by collecting premiums. When you sell an option, the buyer pays you a premium, which is credited to your account. This premium is yours to keep, irrespective of whether the option is exercised. Let’s delve into how this works:   Premiums as a Safety Net: When you sell options, the premiums you collect can serve as a safety net, adding some cushion to your financial endeavors. Here's how:  Selling a Call Option: If you are selling a call option, you are agreeing to sell the underlying asset at a specified price within a set period. If you own the underlying asset and are willing to sell it at the strike price, the premium you collect can help cushion any potential decrease in the asset's market value. Essentially, it provides a buffer, securing you some earnings irrespective of the asset's market movements. Selling a Put Option: Conversely, when you sell a put option, you are agreeing to potentially buy the underlying asset at a predetermined price. If you intend to buy the asset at the strike price, the premium you collect can offset a potential rise in the market price, acting as a safety cushion that mitigates the higher purchase price. 2. Utilizing Time Decay: Options lose value over time, a phenomenon known as "time decay." As an options seller, time decay works in your favor. The closer the option gets to its expiration date without being in the money, the more its value decreases, potentially allowing you to buy it back at a lower price than what you sold it for, pocketing the difference. Understanding and managing the risks   While selling options can be profitable, it is not without risks. Here, we outline some of the risks involved and how you might manage them:   Potential for Large Losses: Selling options can potentially lead to substantial losses, especially if the market moves sharply against your position. It is essential to be aware of the potential losses and to manage your risk appropriately. Margin Requirements: When you sell options, you are required to maintain a margin account. This means that you need to have a certain amount of capital in your account as a security. Being aware of the margin requirements is vital to manage your risk effectively. Early Assignment Risk: There is always a risk of early assignment when selling options. Early assignment happens when the buyer of the option chooses to exercise their right to buy or sell the underlying asset before expiration. This risk can be managed by keeping an eye on the intrinsic value of the option and being prepared to take action if necessary.   Strategies to mitigate risks   While the risks are present, there are strategies that you can employ to mitigate them:   Setting Stop Losses: One strategy is to set stop losses to limit potential losses. A stop loss is an order placed to buy or sell once the stock reaches a certain price. Spreading: Another strategy is to use spreads to limit potential losses. In a spread, you sell one option while simultaneously buying another, helping to cap both the potential profits and losses. Spreads is what is called a "options strategy", which we will cover in future "From zero to hero"-articles. Hedging: Though we are keeping it simple in this guide, know that there are advanced strategies like hedging that can further help in managing risks, which you might explore as you become more comfortable with options trading.   Crafting a strategy and identifying opportunities   Analyzing Market Conditions To identify lucrative opportunities for selling options, it's crucial to have an understanding of the broader market landscape and the specific conditions surrounding the assets you're interested in. Here are some aspects to consider:   Volatility: Understanding the volatility of a stock can help in determining the potential premium you might receive from selling an option. Typically, higher volatility leads to higher premiums. Economic Indicators: Keeping an eye on economic indicators and news can provide insights into the potential movements of the stock market, helping you to make informed decisions. Company Performance: Before selling options on a company’s stock, consider the company’s performance, financial stability, and future prospects.   Developing a Strategy Once you have a grasp of the market conditions, the next step is to develop a strategy that suits your financial goals and risk tolerance. Here are some strategies commonly employed by options sellers:   Covered Calls: If you own shares of a stock, you might consider selling call options on that stock to generate additional income. This strategy is known as writing covered calls. Cash-Secured Puts: Another strategy is selling put options while having the necessary cash to purchase the underlying stock if it gets assigned. This strategy, known as cash-secured puts, allows you to potentially buy the stock at a lower price while earning a premium. Naked Options: For the more adventurous investor, there's the strategy of selling naked options. This involves selling options without owning the underlying asset, a strategy that comes with higher risk but also higher potential rewards.   Tools and Resources As you embark on your journey into the world of selling options, having the right tools and resources at your disposal can be a game-changer. Here are a couple of suggestions:   Trading Platform: SaxoInvestor and SaxoTraderGo are excellent platforms to start your options-journey. SaxoTrader Pro is our top of the line platform for advanced trading and research. Educational Resources: Continuously educating yourself through reliable resources aids in making informed decisions. Plenty of high quality content can easily be found via search engines, Youtube and others.       Venturing into the world of selling options can feel like discovering a secret garden in the financial landscape. It's a space where you can find new ways to grow your savings and secure a little extra for the future.   Imagine having a toolkit where you not only benefit when stock prices go up but have strategies to pocket gains even when the markets are not on your side. Selling options offers this toolkit, allowing you to play a different game where the moves are more in your control.   With selling options, there's a whole new world of possibilities, from earning through premiums to exploring strategies that can be beneficial in various market scenarios. It's all about understanding and making choices that align with your financial goals.   Dipping your toes into the realm of selling options can provide a unique perspective on managing and diversifying your investments.