Rippers Weekly Recap 7/08

Hey everyone, it’s @StockMKTNewz Evan!

I spend 70 hours every week looking for news so you don't have to. That causes me to tweet a lot which can be hard to keep up with. Having somewhere to put all the major stories in 1 easy to view place is really valuable, and that's why I make this newsletter!


About SaberTrade

Unleash your financial potential with SaberTrade: Monetize your financial insights as a content creator, trade securely as an informed investor.

SaberTrade provides a new way to monetize financial content. Creators can generate revenue by using SaberTrade to link directly into brokerages from their content. Investors viewing this content can use SaberTrade buttons to execute trade ideas from their favorite experts - directly in their brokerage account.

Our mission is to help everyone invest confidently and intelligently, while promoting a collaborative environment where traders and financial content creators are incentivized to share their best ideas with the community.

Trade buttons found in this newsletter are powered by SaberTrade.

How The Stock Market Performed This Past Week

All images below are sourced from 

Heat Map of the S&P 500

How The Largest Stocks Performed

Best Performing Large Cap Stocks

Worst Performing Large Cap Stocks

💡SaberTrade Ideas: How To Trade a Potentially Disastrous Labor Dispute At UPS

Disclaimer: Not Financial Advice

UPS is in the process of negotiating a new contract with the International Brotherhood of Teamsters – the union that represents its workers. Negotiations broke down Wednesday in a nasty way, with finger pointing on both sides. The current contract is set to expire at the end of the month – and a massive strike will begin in August if a deal is not reached. A similar dispute occurred in the late 90s, ending with a huge strike that damaged UPS.

As traders, we ask ourselves the eternal question: How do I make as much money as possible off this? 😊 

If you think the market is underestimating the likelihood or magnitude of this strike, there are a few ways to play it:

  • Simply sell short UPS.

  • Buy a direct competitor like Fedex, betting that a theoretical strike at UPS will make some of its customers start using Fedex instead.

Both of these ideas leave you with exposure to a lot of factors besides the strike, which could impact your profit.

A cleaner way is to:

  • Buy Fedex and short UPS so that you can hedge out a lot of these factors while still gaining the exposure you want.

  • Use options to bet on the volatility term structure. At the time of this writing, the implied at-the-money vol for the first week in August is very close to the implied at-the-money vol for the last week in July. This means the market is assigning minimal likelihood to a big move in UPS immediately after the union contract expires. To take advantage of this, you could buy an ATM put – expiring Aug 4 – and sell an ATM put – expiring July 28.

This Week's Major Headlines

Get Prepared For The Week Ahead!

That's it for today — thanks for reading! Want more Rippers? Make sure you're subscribed to this newsletter and never miss a weekly recap


or to participate.