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APT - Afterpay Limited

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Today's snapshot of the gainers. Demand is strong for BNPL services.

 
as of today, after touching $75 and closing at $73.50 a share, AfterPay is in the ASX Top 20 based on Market Capitalisation, of over $20bill
 
So_Cynical said:
Afterpay and Touch have merged to become the Afterpay Touch Group, 215 million shares on issue with a MC of 669 Million, top 20 hold 65%, i imagine an investor presentation will be released in a few weeks or so, 3 directors in the top 20.
Click to expand...
Spectacular !!
 
I see a lot of chat here about APT. What are we doing about the stock other than chatting about it?

APT has had a nice run. Cynical, i hope you don't mind but i'll like to add some options trading into this thread as a means on how to trade a stock with high IV and maybe something to learn plus a bit of flair into the conversation. If you do, let me know and I will stop.

Been watching this stock since Feb. Had no courage to buy in at $10 in March!
Its had a breather hitting 72 or so and showing some support at 70. There is no indication of the next support down but with the co founders selling and buy in from some players lets assume 66 is a starting point.
Who knows what is to happen so using this run from April, and loosely (i mean very loosely as there are no other indicators what so ever) using EW, this run up to 70 is wave 1. Wave 2 will retract to some point but we don't know. Furthermore, earnings report is late august.

Lets pretend we buy a 60 PUT Dec 20 for $9 and sell a 65 PUT Aug 20 for $5. We need to pay for the long put, and margin is required for this position as well as a trade plan. 1 of 2 exciting events happens at expiry
1. 65 PUT expires worthless
2. we are assigned and own APT stock. The cost of APT on assignment is $65 plus fees.
For those familiar with options, have a think on what to do for Sept options. Remember IV is high.
There are various scenarios to consider, i'll leave that for you to consider as well.
We wait.
 
13/8/20 One week till August Put expiry and its looking good so far. We have a choice, close early and remove risk or go to expiry. Lets go to expiry according to original trade plan.

What are we thinking for Sept? AGM is around 27th August.

Food for thought
1. as APT moves up, selling PUT will require more margin as we are long DEC 60 PUT
2. acquisitions of shares will require funds
 
Afterpay is hiring an Influencer Marketing Associate, based in New York City, according to a filing on LinkedIn.

"Afterpay is looking for a freelance contractor to help us maintain and grow our influencer network. We're looking for someone who has at least 3-6 years of experience working on influencer campaigns, and can dedicate at least 25 hours per week to this program." This role will be a 6 month contract, the company says.

Key responsibilities include selecting monthly influencers via the company's partner influencer platform; assisting with managing the brand ambassador program; and "ensuring activations happen in timely fashion."

"If you are brave, if you are committed to doing the right thing, if you always keep it real, and your background matches the description above then please apply today!," the company says.

Afterpay is continuing to hire for all open roles with all interviewing and on-boarding done virtually due to COVID-19. All new team members, in addition to current staff, will temporarily work from home until it is safe to return to our offices.

- so, you can get to influence the choice of influencer?. The whole process sounds rather cut-throat to me. And I thought on-boarding happened at Guantanamo Bay
 
Apt announcement yesterday:

https://pasteboard.co/JnaYSmT.jpg

NTL improvements is a huge factor for the bears as that’s what they’ve been propagating about. Quite a huge deal. Imo, it’s about the millennials and Gen Z wanting no debt coming forward which is their main market.

Am I also sus that this announcement is a pretty big pump to the price? Ala Elon style haha.

Disclaimer: I hold APT
 
Yeah, and a big selloff. Combine that with an AUD/USD breakout and it was slammed.

Might be a nice dip to buy into next week if we're lucky.
 
Moving on from the excitement.
We are still long Dec20 $60 Put. The short August put expired worthless. Lets assume the long put is paid for.
As there has been no input from any readers lets sell a Sept $102 call ($2 above the psychological $100) and Sept $85 put. Break even is $108 and $76. The ideal Sept finish will be $85.01 hugging as close as possible to the Dec Put.
Lets keep gardening, keep working and let time do its thing. Lets also hope for no excitement over the next 3 weeks despite the upward trend giving APT a little break from the 5 month party!
 
I usually like to put my markers in at things like $99.98 or $100.02. You'd be surprised how often people just round things off without thinking and that extra tiny bit can be the difference between getting something filled or not.

Same goes with ebay auctions - bid $1002 for something and you'd be surprised how often you'll get it over the guy that has a limit of $1k.
 
total newbie and I think APT will keep going up given more people are switching to the buy now, pay later model. This might become an option to credit cards in the long term and more people are using their money during lock down to cut credit card debt and canceling them.
 
1 week to go and APT swimming at $74, looks like we might be proud owners of a BNPL company!

Get your thinking caps on and plan for October...where now brown cow?
 
The tech selloff is still biting.

I can see an awful lot of people using afterpay, zip pay etc etc come christmas time. It's a good longer position IMO but I reckon there's more to drop yet.
 
over9k said:
The tech selloff is still biting.

I can see an awful lot of people using afterpay, zip pay etc etc come christmas time.
Click to expand...
I agree, also you can see how CBA and others are trying to get into the game but the offering is not as attractive. So it might show that BNPL is a "thing" who would be the winner is the question. APT has the costumers on both sides of the market so that gives them a little moat (not huge)
 
Think about this for a second:

APT/Z1P are in the middle of a tech selloff. But let's take a look at earnings etc this time this year vs this time last year - total blowouts, and only increasing in difference every day.

So take the natural increase/market penetration you'd expect to see year on year, add the pandemic to it, and you have a recipe for a total blowout once the Q4 earnings are posted.

The question then becomes, what do we get after that? Well we get competition for one, hence the interest free credit cards etc etc etc, but those products are going to take time to actually penetrate the market - into next year before they really start making a dent kind of time.

So full disclosure here - I hold a tiny bit of Z1P and APT, am expecting more drop to come through september, and then a blowout earnings after christmas which is when I'll be selling before the competition actually start to eat into their marketshare in any kind of significant way.
 
The short put will be assigned and we are now proud owners of $85 APT.
To reduce the the lost in value should APT's stock price decline, we have a few options.

1. sell ATM call
2. sell OTM call
3. wait a few days and see if price moves up to collect more premium.

Closed today at $73.

I would not be selling PUTs yet as the technical are showing price decline.

Remember we have a $60 PUT Dec expiry that has been paid from previous short puts.

Thoughts?
 
Tech's getting slaughtered without stimulus in the U.S and AU naturally follows. With there appearing to be almost no chance of stimulus until at least after the election, there's more pain to come.
 
How now brown cows...sounds more appropriate for a2m

We have some resistance and support from technical view rather than the linear line with a gradient which i presume most would prefer. All good things come to an end.

We need to justify holding APT shares at $85. You need to pick a strike your willing to see your APT leave.

lets keep things simple and action some covered calls to help lower the buy price.

Pick a month that suits your analysis. Wait for APT to move higher to the call strike.

I'm willing to see my APT leave at $80, will wait till either Nov call sells for at $5.9

The $0.9 will cover the brokerage and a little risk profit from the assignment of acquiring APT and selling APT.

Lets consider selling put, but will do so once the call is in play.
 
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