Charles Schwab (SCHW) Offering Possible 5.93% Return Over the Next 6 Calendar Days

Charles Schwab's most recent trend suggests a bullish bias. One trading opportunity on Charles Schwab is a Bull Put Spread using a strike $34.00 short put and a strike $29.00 long put offers a potential 5.93% return on risk over the next 6 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $34.00 by expiration. The full premium credit of $0.28 would be kept by the premium seller. The risk of $4.72 would be incurred if the stock dropped below the $29.00 long put strike price.

The 5-day moving average is moving up which suggests that the short-term momentum for Charles Schwab is bullish and the probability of a rise in share price is higher if the stock starts trending.

The 20-day moving average is moving up which suggests that the medium-term momentum for Charles Schwab is bullish.

The RSI indicator is at 47.77 level which suggests that the stock is neither overbought nor oversold at this time.

To learn how to execute such a strategy while accounting for risk and reward in the context of smart portfolio management, and see how to trade live with a successful professional trader, view more here

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LATEST NEWS for Charles Schwab

Tesla’s Split Doesn’t Matter. Try Telling That to Tesla Stock Owners.
Thu, 13 Aug 2020 17:50:00 +0000
News that Tesla stock is splitting 5-to-1 shouldn’t be a big deal for the stock price. But it appears to be.

Fractional Shares Expose Wall Street Greed
Thu, 13 Aug 2020 16:00:24 +0000
(Bloomberg Opinion) — It used to be that novices went about investing the right way. They bought low-cost mutual or exchange-traded funds using the dollar-cost averaging strategy and held them for years. But a gigantic stock market rally since late March seems to have inspired millions of new investors. And instead of being confined to relatively safe, stodgy funds, they now have the ability to buy so-called fractional shares, or less than one share of stock. This is giving more people access to the stock market than ever before. I would not characterize this as progress.Back in the days of pin-striped suits, suspenders and bull and bear cufflinks, one used to have to buy a “round lot” of 100 shares to invest in the stock market. The cost to do so could easily run into the the thousands of dollars. Sure, “odd lots” of less than 100 shares were permitted, but they were frowned upon because such trades were more expensive for brokers to executive and not worth the effort. This did a pretty good job of keeping uninformed investors out of the market and from hurting themselves financially.Now, the business of executing trades has become more efficient and less costly, with many platforms now offering such services. This has led to something called the democratization movement, which believes that everyone should have the ability to trade stocks even if they don’t have enough money to buy even one share, let alone 100 shares. Firms ranging from Charles Schwab Corp. to Robinhood Financial LLC and  Social Finance Inc. now allow investors to buy a fraction of a share for as little as $5 or less. Stash Investments LLC even has a “stock back” debit card that  offers share rewards on purchases, according to Bloomberg News. The Wall Street Journal recently reported that Fidelity Investments, which rolled out fractional trading to customers in January and February, says more than 340,000 of its accounts have placed a fractional trade.Someone who has only $5 to invest should not be putting that money into stocks; they should be buying food. Nobody is saving for retirement $5 at a time. This is rank speculation, and most of it is on the high-flying tech companies that have mostly refused to split their stocks.(2) Only three members of the S&P 500 Index have split their stocks this year, and more than 30% have gone without doing so since 2000 or longer, according to Bloomberg News.(1)I doubt there is much in the way of profit for discount brokers in trading fractional shares, but what they are really hoping for is that all these small accounts will one day turn into large accounts. In that sense, fractional shares are a gimmick, designed to ensnare small, unsophisticated investors into becoming paying clients. Commission-free trading was a gimmick, too, as commissions have only really represented a small part of overall revenue in recent years.Stunts like these would be difficult to pull off in a bear market. But the brokerages have been successful in appealing to people’s greed, along with Instagram accounts featuring pictures of infinity pools and Lamborghinis supposedly bought with the proceeds of day trading. Numerous studies on the performance of small investors, including one from Brad Barber and Terrance Odean of University of California at Berkeley, show that they tend to underperform the market by holding “under-diversified portfolios” and “trading actively, speculatively, and to their detriment,” and that “individual investors earn poor returns even before costs.” Most ordinary people are psychologically hard-wired to behave in suboptimal ways when it comes to investing, and fractional shares are just another way for discount brokerages to facilitate this behavior. Even Vanguard, one the few firms that does not appeal to investors’ sense of greed, acknowledges that many investors actively trade their mutual fund offerings, leading to diminished performance.History shows that the vast majority of these new traders chasing hot stocks will lose money and probably end up worse off than if they had never invested in stocks. Democratization of the stock market will fail, leading to a generation of investors distrusting Wall Street and perhaps even capitalism. Investors are most successful when they hire qualified financial advisors and pay sales charges on mutual funds and high commissions, which encourage them to buy investments and hold them for long periods of time. We have to let go of the idea that everyone should own and trade stocks because people are emotionally unfit to do so.(1) Apple Inc. said July 30 it would split its shares 4-for-1as the stock price surged toward $400, and Tesla Inc. announced a 5-for-1 stock split on Aug. 11 as it's shares reached around $1,400.(2) The disappearance of stock splits is one of the sadder stories of modern finance. In the past, the idea was that a company would want its stock price to be more accessible to a broader range of investors. These days, there’s the misguided notion that the higher a stock price, the more successful the company. And yet, there is evidence that liquidity deteriorates at high stock prices, which benefits neither the company nor its shareholders.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Jared Dillian is the editor and publisher of The Daily Dirtnap, investment strategist at Mauldin Economics, and the author of "Street Freak" and "All the Evil of This World." He may have a stake in the areas he writes about.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

SS&C Announces Expanded Black Diamond Integrations with Schwab Advisor Center®
Mon, 10 Aug 2020 15:14:00 +0000
SS&C; Technologies Holdings, Inc. (Nasdaq: SSNC) today announced new integrations for SS&C; Advent's Black Diamond Wealth Platform with Schwab (NYSE: SCHW) Advisor Center®. These integrations provide users of Schwab's custodial platform with additional opportunities to eliminate paper-based processes and further digitize their workflows.

Wasmer Schroeder High Yield Municipal Fund Reorganized Into Schwab High Yield Municipal Bond Fund
Mon, 10 Aug 2020 13:30:00 +0000
Wasmer Schroeder High Yield Municipal Fund (WSHYX) has been reorganized into the new Schwab High Yield Municipal Bond Fund (SWHYX) according to CSIM.

Fintech Focus Roundup For August 8, 2020
Mon, 10 Aug 2020 01:12:25 +0000
Why The Rocket IPO Marks A Paradigm Shift In FinanceWhat Is Happening? Rocket Companies, home to Quicken Loans, the nation's largest retail mortgage lender, priced its 100-million share IPO offering at $18 per share, valuing the company at about $36 billion. What Does It Mean? The IPO is just a milestone in the company's aim to revolutionize finance, a natural extension of the firm's core ISM: numbers and money follow; they do not lead.Intercontinental Exchange To Acquire Ellie MaeWhat Is Happening? Intercontinental Exchange, a leading operator of global exchanges and clearing houses and provider of mortgage technology, data and listing services, announced it has entered into a definitive agreement to acquire Ellie Mae, a cloud-based platform provider for the mortgage finance industry. What Does It Mean? Through this complementary addition, ICE Mortgage Services will provide innovative technology that touches nearly every U.S. mortgage, accelerating additional digitization and streamlining of the mortgage manufacturing process, and ICE Data Services will be able to add to its offerings.Charles Schwab To Adopt thinkorswim Trading PlatformsWhat Is Happening? The Charles Schwab Corporation announced it plans to integrate the award-winning thinkorswim and thinkpipes trading platforms, education and tools into its trader offerings for retail and independent advisor clients. What Does It Mean? While the company has said that adopting Schwab platforms and systems generally will be the most effective way to achieve a successful and timely integration, Executive Vice President of Schwab's Integration Management Office Jason Clague asserted that "We are committed to leveraging material advantages in TD Ameritrade's platforms when doing so enables us to deliver a differentiated experience to all of our clients. That commitment drove these decisions."PayPal Cites 'Death Of Cash' As Firm Posts Record EarningsWhat Is Happening? PayPal executives said society has reached an "inflection point" when it comes to the "death of cash," and noted that 70% of consumers now fear for their health when it comes to paying in stores. What Does It Mean? In response to these trends, the company says it is investing heavily to improve its digital wallet, which it hopes will become a daily part of life for many consumers. PayPal is focused in particular on promoting the use of QR codes by merchants and Venmo users. Trump Preps Bans On WeChat, TikTok, Stoking China TensionWhat Is Happening? U.S. President Donald Trump has unveiled sweeping bans on U.S. transactions with the Chinese owners of messaging app WeChat and video-sharing app TikTok, escalating a high-stakes confrontation with Beijing over the future of the global tech industry. What Does It Mean? The executive orders announced Thursday and effective in 45 days come after the Trump administration this week flagged increased effort to purge "untrusted" Chinese apps from U.S. digital networks, calling Tencent Holdings Ltd's WeChat and Bytedance's popular TikTok "significant threats."See more from Benzinga * Fintech Focus For August 7, 2020 * 'A Long Way To Go': Stock Market Update For The Week Ahead * Fintech Focus For August 6, 2020(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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