The 2020 Space Race

In recent years commercialization of space travel has become the playground for those who can afford to experiment into the unknown. Some of the most well funded individuals have been taking their shot at creating a cost efficient and reusable space vehicle.

Elon Musk and his team at Space X has had their eyes on mars. They have been working various missions for NASA and other clients currently with satellites and supplies to the International Space Station. Their ability to be able to reuse their rocket efficiently has allowed them to save millions of dollars.

Their technology is landing their rockets back safely to Earth has been a marvel to watch. When you see those rockets touchdown smoothly on these motorized landing pads floating in the ocean that were communicating the with rocket that was reentering Earth’s atmosphere is quick incredible.

Jeff Bezos has been testing new rocket technology with his company Blue Origin. The company is currently in its IPO stages and has received $500,000,000 to date. Having been founded back in 2000 they have been working over the years to design an affordable and enjoyable experience for individuals to be able to explore the beauty of space.

The goal of the first design is to be able to take 6 individual in the rocket up into space for you to be able to experience being able to see Earth from a different perspective. By being able to maximize the amount of individuals on board you are able to help reduce the cost on each individual.

Having completed various tests and prototypes they are well on their way to developing technology that can make space travel affordable and safe for others to explore.

The United Launch Alliance is an organization that was founded by the joint partnership of Boeing (BA) and Lockheed Martin (LMT). They have been working on the recent Starliner which they aim to be the next transporter of individuals going to and from the International Space Station

The race towards being the most cost efficient and safe transporter of individuals in space is going to be the winner of the 2020 space race. As we are able to transition into technology that is tested to be able to travel through space safely and at a value that is reasonable we are then able to explore into further areas of our galaxy.

Aside from being able to explore further to other planets some organization have also looked into low powered orbit travel to be able to travel long distances in reduce time. As you travel at higher altitudes your ground speed increases. Thus the higher you go the faster you would travel.

ROCKET LAUNCH 360: ATLAS V STARLINER

Take a trip to the International Space Station, blasting off on ULA’s Atlas V rocket aboard Boeing’s Starliner capsule. Walk across the launch pad, experience the view from the top of the Crew Access Tower and get ready to give your go as you prepare for launch and your time on station. Go Atlas V! Go Centaur! Go Starliner!

Some organizations have theorized that with low orbit powered flight you would be able to travel halfway around the world in less than 2 hours. This kind of technology would be revolutionary in the way that individual would travel. But the real question is at what cost would that come with? What kind of repercussions would there be environmentally. What would this cost to fund?

Top Trading Space Stocks

When we look at the market as a whole we need to take into consideration what the world is currently going through. Just like how in early 2000 there were not many online companies that were publically traded. Now 20 years down the line many of the stocks that are being traded today are companies that have either started online or make a large portion of their reveue from the internet.

When we look at the fees that brokers would charge for their trades, they have been reduced to zero because of the internet. As more information was released and the access became more available to everyone we demanded for a fair grounds of investing for everyone and we received it by brokers dropping their rates.

Space stocks are going to certainly take off in the market in the next 20 years.

Many of the companies that are going to be worth billions of dollars have yet to be created. When we look at space as an industry that we can invest in there is really no telling what potential lies in the industry as it is still such unknown territory for many business individuals.

The more that we explore and discover about the great unknown around us the more we can be able to learn and develop new technology. Currently in today’s market there are few stocks that are working on aerospace technology. In no particular order here are some of the stocks that have the highest trading volume.

Company NameTickerCurrent PriceAnnual Growth
Lockheed MartinLMT434.4842.68%
Northrop Grumman NOC366.1527.36%
Virgin GalacticSPCE37.35266.90%
Boeing BA338.30-18.99%
AeroJet RocketdyneAJRD$53.1335.64%

SPCE Approved by Banks and Funds

Virgin Glactic has been the headliner on the news this last week. With days with over 20% gains and rallies supported by hundreds of thousands of orders. The stock has been taking off to new heights. The company has just finished reaching a new milestone in their testing of their rocket equipment.

Overall the talk around the company has been extremely optimistic and hopeful.

Park West Asset Management disclosed on Friday that it has acquired 4.25 million shares of Virgin Galactic, or 2.1% of shares outstanding. The fund is now the seventh-largest shareholder. With many other banks and asset manamgent organizations entering in large positions in the stock that would only lead one to potentially see the benefits that would be for the long run of holding this stock.

This news comes shortly after Virgin Galactic said that SpaceShipTwo Unity has reached Spaceport America in New Mexico for final flight testing. This moves a second spacecraft closer to commercial operation, which is ultimately what will drive value for shareholders. – Travis Hoium (TMFFlushDraw)

Trading with Volatility

Volatility is often a measure of fear in the market. The overall market Volatility index can be tracked on the financial asset known as the VIX. This gives us an understanding of what the volatlity of the overall market is at any given time. Using Tradingview we are able to see the volatity index for each individual stock that we are trading.

When we take into account volatitlity when we are trading we need to understand the sentiment behind what higher volatility means to investors. As volatity goes up that is signalling that there is greater potential for sudden changes and rapid movement in the stock. That does not mean that the stock is doing to guarantee to reverse or continue in the same direction. It just means there is less certainty in the direction overall.

With greater uncertainty investors look to potentially gain confidence in knowing their money is secure and not going to loose value. One of the most important rules investing anyways is do not loose money. So as investors look to secure their profits during peaks in the market the see that volatility is high and they begin to have fear the stock may drop and they close their position.

Now this is just a scenario of what one may do in this kind of situation. On the other side if you are selling options in the market and see that volatity is high and price is starting to stall out near a high, you may start to plan out a trade. These situations allow for options sells to gain rich premiums should their options strategy be well executed.

Of course there is always great risks when trading options as they are decaying assets that loose value over time. We need to make sure we are entering the market with a specific goal and once that outcome is reached we need to close our positions and secure our profits.

One of the greatest pitfalls of investors is holding on to options in the hopes that there will be greater gains in the long term holding of the asset. As Theta begins to decay as you get closer to the date of expiration the value of the option begins to wither away. Picking the appropriate strike price to allow your stock the time for your desire moved to be complete is key in your success as an options trader.

Thanks again for joining us today as we go over the latest in aviation and aerospace news. Make sure to subscribe to get the updates directly to your inbox. As always happy Trading!

Processing…
Success! You’re on the list.

Disclosures
Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options before deciding to invest in options: https://www.theocc.com/components/docs/riskstoc.pdf

Air Market Group content is provided solely by Air Market Group LLC and is for informational and educational purposes only. It is not, nor is it intended to be, trading or investment advice or a recommendation that any security, futures contract, transaction or investment strategy is suitable for any person. Trading securities can involve high risk and the loss of any funds invested. Air Market Group, through its content, financial programming or otherwise, does not provide investment or financial advice or make investment recommendations. Investment information provided may not be appropriate for all investors, and is provided without respect to individual investor financial sophistication, financial situation, investing time horizon or risk tolerance. Air Market Group is not in the business of transacting securities trades, nor does it direct client commodity accounts or give commodity trading advice tailored to any particular client’s situation or investment objectives. Supporting documentation for any claims (including claims made on behalf of options programs), comparison, statistics, or other technical data, if applicable, will be supplied upon request. Multi-leg option strategies incur higher transaction costs as they involve multiple commission charges. Air Market Group is not a licensed financial advisor, registered investment advisor, or a registered broker-dealer. Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options before deciding to invest in options.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: