r/stocks

This is the daily discussion, so anything stocks related is fine, but the theme for today is on stock options, but if options aren't your thing then just ignore the theme.

Some helpful day to day links, including news:

• Finviz for charts, fundamentals, and aggregated news on individual stocks
• Bloomberg market news
• StreetInsider news:
• Market Check - Possibly why the market is doing what it's doing including sudden spikes/dips
• Reuters aggregated - Global news

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Required info to start understanding options:

• Call option Investopedia video basically a call option allows you to buy 100 shares of a stock at a certain price (strike price), but without the obligation to buy
• Put option Investopedia video a put option allows you to sell 100 shares of a stock at a certain price (strike price), but without the obligation to sell
• Writing options switches the obligation to you and you'll be forced to buy someone else's shares (writing puts) or sell your shares (writing calls)

See the following word cloud and click through for the wiki:

Call option - Put option - Exercising an option - Strike price - ITM - OTM - ATM - Long options - Short options - Combo - Debit - Credit or Premium - Covered call - Naked - Debit call spread - Credit call spread - Strangle - Iron condor - Vertical debit spreads - Iron Fly

If you have a basic question, for example "what is delta," then google "investopedia delta" and click the investopedia article on it; do this for everything until you have a more in depth question or just want to share what you learned.

See our past daily discussions here. Also links for: Technicals Tuesday, Options Trading Thursday, and Fundamentals Friday.

Mag7 is lazy, I get it, also to be safe, indexes are better of course

There is a very weird dynamic specific to Reddit, an all VOO/VXUS portfolio, OK

A bunch of barely profitable companies with 0 moats, also OK

Is everyone forgetting, as per back tests all the way back to 1980, the top 10 stocks by cap always outperform the index, if a stock falls to 11th and is sold, and the new entry bought at 6 months intervals, the method completely destroys everything else.

Why are people complicating the markets so much, everyone’s talking about rocket lab, and sleeping on Microsoft with hundreds of billions booked revenue, for example.

TL;DR DRTS is a company with true (proven!) life saving potential, and as can be seen by the recent increase in volume and SP, the results are starting to get recognition, and this week they are expected to announce the most exciting data yet.

DRTS has discovered how to deliver alpha radiation into the tumor, cleaning out the cancer while sparing healthy tissue.

This is exciting in many ways, for example the high effectiveness, the lack of side effects, the fact that it’s a single session outpatient procedure and more.

But maybe most exciting, is the fact that it’s the same treatment for all solid tumors, and has yet to find a tumor type that doesn’t respond.

That enables the company to go after the most high unmet needs cancers, and the results are unbelievable. For example last week they announced Complete Response in Recurring GBM, before that they announced 100% Disease Control Rate in Pancreatic Cancer, and for Skin Cancer (already approved in Japan) they completed “phase 3” with prior trials showing 100% complete response and testimonials to show for.

The company has everything set up perfectly, from the experienced team to the funding, already built and approved commercial manufacturing, 50+ clinical sites worldwide, many different FDA trials in different indications, it’s truly only down to execution (which they are acing) and continuous good results.

Speaking of continuous good results, this weeks news, news that should have everyone at the edge of their seats, is that DRTS is expected to share Pancreatic Cancer Survival Data at the upcoming ASCO annual meeting.

To date all DRTS results have exceeded expectations, and last month when RVMD announced PanC survival data they added 10 billion to their market cap, while DRTS (different treatment) could demonstrate even better numbers than that while trading at about a 1 billion market cap.

NFA and DYOR, the regular biotech risks apply, but this is an opportunity to join the journey of a company that could change cancer treatment forever, can become an industry leading platform, and the expected news could be a big step forward towards saving millions and making millions.

Edit: Y'all are taking this way too seriously

I don't mean it in the way of my mood becomes bad once I see red. I mean that on days where I happen to be having a bad day, I look at my account and see all red. Then on days where I happen to be doing well, somehow the market is too.

I started noticing this a month or two ago and paying attention. I don't think it is the fact that the market is doing poorly or well, dictating my mood. It really feels as if I'll have zero idea what the market is doing, sand still in my eyes, some crazy shit happens that pisses me off(I am only hooman).. Only to look at the app and go "oh great, a red day". Now, I do not hold too much attachment to how the market is doing and compartmentalize it. I could watch myself lose thousands in a day and it honestly doesn't phase me, I guess because of my convictions.. So I really don't think it is the market upsetting me or inversely making me happy. It is almost like my mood dictates the market. And if you'd like, I sell stock psychic plans guessing the best tickers 110% of the time for only $9999/month! Just kidding.

But really though, has anyone else ever noticed this? It is starting to weird me out as it is almost never not the case since I started paying attention to my mood's relation with wherever the market is that day

Netanyahu is getting really excited over another reason to bomb a middle east country or flatten a hospital. Trump too. They can't wait to sabre rattle.

Khameini says no deal, tightens grip on uranium and Hormuz strait. Oil to $150/bbl maybe.

Chips CONTINUE to be overvalued heavily as musk rushes in to cash in on the bubble by IPOing another lossmaker he can wrap into another company. Musk is very experienced, he lived through dotcom and knows how to make a quick buck swindling indexes before the fall.

Indexes need to come down 30... maybe 50%. Lots of froth as they pile lossmaking companies into index funds disproportionately, and AI, chips, memory and now even space companies are all deeply intertwined. This is what we call shadow banking.

If you like indexes now, you'll love them at 50% off guys.

My household income is around 140K, I have two kids, and saving about 18% of gross and most of it is sitting in target date funds in the 401(k)s which is fine, but I've had a taxable account running on the side where I've been picking individual stocks for the last four years and I finally sat down and actually ran the numbers.

I haven't beaten my index equivalent after tax (roughly even), maybe slightly behind, and the part I keep coming back to is I've probably put 200 hours into research over those four years and I could have gotten the same result by automating the whole thing and doing literally anything else with my time. The thing is I actually enjoy the research, that's the honest part of it, it doesn't feel like homework the way a lot of financial stuff does. but I also have two kids and I'm not swimming in free hours and I keep asking myself whether I'm spending those hours on something that's going somewhere or just scratching an itch.

Anyone been at this exact fork? did you commit to going deeper and actually develop an edge, or did you just index and feel better about it?

Stock noob here. If SpaceX were to go IPO, does anyone have opinions (ha ha ha) about what that might mean pre-IPO, short-term, and long-term for stocks like LUNR, ASTS, and RKLB (or anything else similar to SpaceX's businesses)?

I know the standard past doesn't predict future disclaimer, but are there other recent examples of trends in this situation when a private company goes public and how that impacts the rest of the already-public industry/competitors?

Thanks!

With earnings season mostly wrapped up, companies in the S&P and Nasdaq have posted over 25% YOY earnings growth in Q1 2026, the highest growth since 2021.

Most of this growth has come from tech companies, especially those involved in semiconductor manufacturing, which makes perfect sense given the growing level of capex from hyperscalers.

My question:
Is the earnings growth as good as it appears? Or is it being largely bolstered by the way accounting treatment works for capex?

Semiconductor companies are able to recognize revenue immediately. But the expenses from hyperscalers don't reflect the vast majority of capex in the current quarter. Capex recognition is deferred over time, roughly 5-6 years from what I've read. So all the revenue benefits from chip companies are showing up immediately, but the costs are deferred over a long period. The net effect in the current quarter is extremely positive GAAP net income, making current quarter income look incredible.

Simplified example:
Meta pays $100 to Nvidia/other chip companies in Q1. Chip companies recognize $100 revenue. Meta only recognizes $5 in expenses in Q1 with the remaining $95 to be recognized over time.
Overall Q1 GAAP net income: $100 - $5 = $95.
Actual net increase in cash: $100 - $100 = $0

Do accounting rules not heavily inflate current quarter earnings? Possibly to an extremely misleading degree?

And the earnings reports show hyperscalers are actually running out of cash and are heavily resorting to debt to fund capex. They haven't actually generated much of a return off their chip investments yet. Not to say they won't, but they will need to quickly otherwise the recognition of the capex will come back to bite GAAP earnings very hard in the coming years.

I'm aware true index funds have a few issues as a result of buying stocks automatically once they go up since market cap increases, and then selling them after they go down, to effectively do a poor job timing the market. I saw that some researchers pegged the cost of this at around 0.3%, so nothing crazy but much larger than the fees. I'm wondering if alternatives to VT or VTI/VXUS exist that have similarly low fees, capture the whole market, and solve these issues (by smoothing out rebalancing over time or increasing weight on small cap or something).

Thinking about making this change with huge ipos coming up for spacex and openai, although I think it may be a good idea in general as well.

Anthropic is experiencing such explosive growth that it is expected to report its first-ever operating profit in the second quarter of 2026, according to internal financial projections reviewed by The Wall Street Journal.

Anthropic generated $4.8 billion in revenue in Q1 2026.

It expects revenue to jump to $10.9 billion in Q2 2026, a 130% increase in just one quarter.

Anthropic is projected to earn $559 million in operating profit for the quarter.

This is significant milestones because most AI companies are still losing large amounts of money due to the enormous cost of computing infrastructure.

Much of this growth is being driven by strong enterprise adoption of Anthropic’s Claude AI models, particularly coding and agentic tools that help businesses automate software development and complex workflows.

At the same time, Anthropic’s operating efficiency is improving, with computing costs expected to decline from 71 cents to 56 cents for every dollar of revenue, showing that the company is scaling while becoming more cost-effective.

This performance marks a major turning point for the AI industry, demonstrating that generative AI companies can reach profitability much faster than many investors expected. It also strengthens Anthropic’s position as one of the most formidable competitors to OpenAI and has fueled speculation that the company could soon command a valuation approaching $900 billion, placing it among the most valuable private technology firms in the world.

Mind-blowing growth is about to propel Anthropic into its first profitable quarter

Feels like HK is still one of the main gateways for Chinese companies to go public, especially for bigger tech or consumer brands that don’t go the US route anymore. I’ve been seeing more IPO news pop up again recently, and some of them actually look pretty solid on paper.

At the same time though, I’m not sure how to think about the risks. There’s obviously the whole China regulation angle, plus market sentiment around HK hasn’t been the strongest these past few years. Makes me wonder if some IPOs are undervalued opportunities or just value traps.

Are you guys paying attention to any recent or upcoming HK IPOs? And which broker do you usually use to participate in it?

I’ve been collecting STOCK Act filings and noticed some interesting patterns in recent congressional trades.

Most active buys recently:

• NVDA

• PLTR

• AMZN

• MSFT

• Defense ETFs

Some members are trading surprisingly aggressively despite market uncertainty.

I put everything into a live tracker to analyze trends over time. Interesting to compare activity before major news events.

Curious whether people here think congressional trading should even be legal.

They had a good Q3 with 10% in revenue of $8.56B with FY26 revenue and non-GAAP guidance to $21.34B - 21.37B and $23.8-$23.85, respectively.

What do you think is the cause of the dive? Could 17% corporate layoffs be part of it??

The company also announced it is reducing its full-time workforce by 17 percent to simplify its organizational structure and become a faster, leaner, more focused company. It estimates that it will incur approximately $300 million to $340 million in restructuring charges, largely recognized in its fourth fiscal quarter ending July 31, 2026.

Does this make Intuit a dip buy?

Right now the whole world is waiting for NVDA earnings Some people are selling stocks based on old experiences thinking every NVDA earnings report leads to a market selloff But there are also investors like me who aggressively bought stocks today after the market opened

I strongly believe NVDA can once again hold up this market and lead another wave higher across servers storage optical communications and semiconductors Here are the stocks I bought today after the open MU、 CRDO、 ALAB、 AVGO and SMCI

If NVDA delivers another strong earnings report I believe these five stocks could see the biggest upside reaction

MU because HBM memory demand keeps exploding with the Blackwell rollout

AVGO because spending on AI networking and infrastructure keeps rising

CRDO because it’s heavily tied to AI cluster interconnects and has huge upside volatility

ALAB because it’s become one of the hottest names inside the NVDA ecosystem

SMCI because it’s one of the purest AI server plays benefiting directly from Blackwell deployment momentum

The biggest thing the market wants to hear is simple “Blackwell demand still exceeds supply”

If Jensen repeats that message again I believe the entire AI supply chain keeps moving higher

Do you guys think my strategy is too risky or do you have better ideas and suggestions

Honestly, over the past few quarters, NVDA has delivered incredible numbers almost every time, yet the stock often ends up falling the next day anyway. At this point, whenever I see the stock running up before earnings, I actually get a little nervous

This time, I’m paying much more attention to next quarter’s guidance and any new commentary around AI demand. The current quarter’s numbers almost feel less important now because expectations are already sky-high

Curious what everyone thinks will this earnings reaction finally be different, or are we about to see another classic “sell the news” move?

Just discussing ideas, not giving advice