Good morning investors!

If this is your first time reading, welcome to The Investor’s Edge — a thriving community of more than 16,000 subscribers striving to be better investors with an edge in the market.

Every weekend we publish “The Weekly Wrap-Up” — your ticket to being well informed and staying ahead in the investment game!

This report is designed to help investors of all skill levels break down important stories/topics within the stock market. And best of all, we cut through all of the BS and give you exactly what you need to know in easy to digest, bite sized pieces of content.

Grab your coffee and let’s dive in.

Market Talk

Tech saved the day once again, pulling the the S&P and Nasdaq to new all-time highs again this week while the Dow Jones fell over 0.5%.

3 Stories Moving the Market

These are some of the biggest stories from the second half of the week that had an influence on market action.

Tesla shareholders vote to reinstate Elon Musk’s $56 billion pay package, Musk claims Tesla could become a $30 trillion company

Tesla shareholders voted to ratify CEO Elon Musk's substantial 2018 pay plan, despite a judge's previous order to rescind it due to improper board approval.

This vote at Tesla’s annual meeting in Austin, Texas, doesn't overturn the court ruling but serves as a public relations win for Musk, potentially aiding his future efforts to secure his performance options.

At the meeting, Musk, expressing strong optimism, highlighted progress in vehicle autonomy and projected that Tesla's Optimus humanoid robots could eventually make the company worth over $25 trillion. For comparison, the current total value of the S&P 500 stands at $45.5 trillion.

Shareholders also approved Tesla’s official move from Delaware to Texas.

Roaring Kitty’s GameStop stake grows to 9 million shares after selling his big options position

Keith Gill, also known as "Roaring Kitty," increased his GameStop stock holdings to over 9 million shares and has more than $6 million in cash, as revealed in a recent screenshot of his E-Trade portfolio posted on Reddit’s Superstonk forum.

On June 2, he initially disclosed owning 5 million shares and 120,000 call options. It's unclear how Gill reached his current position, but he may have sold or exercised some of the call options to acquire more shares.

A spike in trading volume for GameStop call contracts on Wednesday led to speculation that Gill was offloading options.

As of Thursday evening, his portfolio's total value exceeded $268 million, up from $210 million on June 2.

Meanwhile, GameStop's annual shareholder meeting on Thursday was disrupted by technical issues and has been rescheduled for Monday.

📚 EDGE-UCATION: What is a call option?

A call option is a financial contract that gives the buyer the right, but not the obligation, to purchase a specified quantity of an underlying asset, such as a stock, at a predetermined price (known as the strike price) within a specified time period. The buyer pays a premium for this right.

Here are the key points:

1. Buyer Rights: The buyer of a call option has the right to buy the asset at the strike price before the option expires.

2. Seller Obligations: The seller (or writer) of the call option is obligated to sell the asset at the strike price if the buyer decides to exercise the option.

3. Premium: The buyer pays a premium to the seller for the option. This is the price of the option itself.

4. Expiration Date: Call options have an expiration date, after which the option becomes void if not exercised.

5. Profit Potential: The buyer profits if the market price of the underlying asset exceeds the strike price by more than the premium paid before the option expires.

6. Risk: The maximum loss for the buyer is limited to the premium paid, whereas the seller can potentially face unlimited losses if the asset's price rises significantly.

For example, if you buy a call option on stock XYZ with a strike price of $50, an expiration date of three months from now, and a premium of $5 per share, you have the right to buy XYZ stock at $50 per share within three months. If XYZ’s price rises to $70, you can exercise the option to buy at $50 and either sell at the market price of $70 or keep the stock, realizing a profit. If the price stays below $50, you would not exercise the option, and your loss is limited to the $5 premium paid.

Shari Redstone’s National Amusements halt discussions with Skydance on Paramount deal

National Amusements has ended talks with Skydance regarding a proposed merger with Paramount Global, concluding months of discussions without an agreement.

National Amusements, controlled by Shari Redstone and holding 77% of Paramount's class A shares, had previously agreed on economic terms with Skydance, RedBird Capital, and KKR. However, they were unable to finalize mutually acceptable terms. 

National Amusements expressed gratitude to Skydance for their efforts and affirmed their support for Paramount’s current strategic plan and ongoing efforts to create value for shareholders.

IE+ Posts of the Week

We continue to push out more and more content every week to give investors that edge. Here are the posts Investor’s Edge+ subscribers received this week.

Edge Report

Mondays are for the investors. Every Monday morning we share exactly what we’re watching in the week ahead, how we’re positioning, and even share a sneak peek into our systems and models. This week we discussed the upcoming inflation reports and shared our outlook on the Fed’s rate hike decision. See the latest full report here:

Portfolio Update - June

Every month we share a full access look into our portfolios, including holdings, performance, activity and our watchlists for the upcoming month. You can see both of our portfolios here:

Earnings Recaps

Every week during earnings season we share a recap of the quarterly reports from stocks that we cover. You can see this week’s earnings recaps here:

The Week Ahead

Next week is relatively quiet on the earnings front, though there will be several key economic reports that have a chance to move markets.

Earnings Reports

Earnings season is winding down and we actually get a break next week as none of the companies we cover are scheduled to report.

Here is the full calendar of scheduled earnings releases:

Economic Reports

Next week’s major catalyst will be the retail sales report, though we also get several manufacturing and PMI reports, key housing data and several speeches from Fed members.

The Investor’s Edge Discord is growing!

Our brand-new Discord server is growing quickly and we are excited to hear from so many intelligent minds!

The channel is tailor-made for investors like you who want to dive deeper into stocks, share insights, and engage directly with us.

Here's what happened in the Discord this week:

🗨️ Chat rooms: Investors discussed the the huge moves from names that reporting earnings like Crowdstrike, Lululemon and Dollar Tree, and shared their insights on the earnings. Members also dove into the number of jobs reports and shared their views on the overall economy.

🚨 Trade Alerts: Chris and Mark shared several trades, including additions to the portfolio and trades that set up their portfolios for the week.

Join us on Discord and let's level up our investing game together. The future of trading awaits—and you're invited to be a part of it! 🌟

Want more? Check out our other resources

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Thank you for reading this edition of the Weekly Wrap-Up. Have a great weekend!

Until next time investors!

Mark & Chris

The Investor’s Edge

Disclosure

This is not investing advice. It is very important that you do your own research and make investments based on your own personal circumstances, preferences, goals and risk tolerance.