Coinbase on S&P 500, Novavax vaccine, Tesla: Trend -Ticker

00:00 Speaker A

It is now time for some of today's trend trends. This morning we watch Coinbase, Novavax and Tesla. First of all, Coinbase officially replaces discover Financial Services on the S&P 500. Coinbase is the first crypto company to join the index. Here is what CEO Brian Armstrong to Jennifer Schonberger from Yahoo Finance said about the recording.

00:21 Brian Armstrong

Coinbase, which joins the S&P 500, means that crypto stays here. It will be in all 401ks. Um, everyone will have a crypto exposure, you know, at least indirectly through coinbase, which is great.

00:36 Speaker A

The share rose by more than 30% before the recording last week, although the message from a hack that the company costs over 400 million US dollars is expected to cost. Still here with me to discuss that we have Amy Woo Silverman. Amy, I know that you are looking at the option market when you talk about individual stocks. What do you see in the coin base?

00:53 Amy Woo Silverman

It is really interesting because I think what Armstrong has sent there is very symbolic of a kind of old guard that is transferred to a new guard. With regard to the coinbase especially around the options, it is only this idea that if it normalizes it, it really determines a change in the correlations. And what I mean by that is that cryptocurrency generally acted this risk of asset and coin base together with this correlation, but since it is more than just a normal part of what, as he said, people have in their 401ks, then I think it starts to rethink their relationship. Maybe it looks like digital gold. Maybe it's really an inflation hedge. We don't see this yet, but I think you see that investors as part of this cohort in Coinbase and crypto in general think and manage these risks.

01:44 Speaker A

Yes, a change to what may drift the trade with this inventory. Really interesting. However, we will pass to Novavax's Covid vaccine that fully approved the FDA. This was delayed after the release when Robert F. Kennedy Jr., secretary for health and human services, had doubts about his effectiveness. The shot is for adults from the age of 65 and older and those aged 12 to 64 who have at least one underlying illness that makes them high risk. Of course, this comes in the middle of Covid cases in parts of the world. We increased the shares by 10%, but Amy, they used to increase 18% today. I am interested in why the street sees this as such a large catalyst for Novavax.

02:24 Amy Woo Silverman

Yes, I think it only depends on what was there before the price and then the surprise you got, so it may have something to do with it. I will generally tell you if you think not only about the options for Novavax, but also to health care, it has been increased incredibly when we look at our liquid universe of all sectors. The healthcare system has the greatest uncertainty in connection with what Trump was associated, but also associated, I would say only much more idiosyncratic risk in connection with many of these factors such as the FDA approval or perhaps the disapproval of an attempt that they do not receive in other shares.

03:14 Speaker A

Perhaps a signal for how much political uncertainty is available in this sector.

03:20 Amy Woo Silverman

So much.

03:21 Speaker A

Yes, absolutely. Really good stuff. We will also talk about Tesla, who have decreased today among the great seven. The electric vehicle manufacturer, who adds a new board member, CFO in retirement, and the appointment of Jack Hartung, is effective on June 1st, but Tesla attributes again in the Mag 7, which has dropped by a little more than 2%this morning. This is always a funnier to speak options for Amy. What do you see with Tesla?

03:48 Amy Woo Silverman

So I will tell you that Tesla is a name that I never want to give up, because when I stretch back to its option history, it has the hardest form of what we call SKEW in version, but it is a really simple way to say. from. It happens in Tesla, maybe Nvidia, but not very many names show this as you see it in Tesla.

04:30 Speaker A

How can investors monitor this?

04:33 Amy Woo Silverman

So take a look at how the prices for the Call option act relative to the PUT option price design when this goes beyond the normal relationship of this spread spreader, and then you can see that this swing is rebuilt in the stock.

04:49 Speaker A

Really, really important context there, Amy. Thank you. For our audience you can scan the following QR code to track the best and worst stocks with the Yahoo finances at the trend on the side of the ticker.