The stock Trak represents the motive of buying and selling stock trade through hedging or long and short positions depending on the stock markets moving per day during a week. The paper is an individual’s work and has no association with any work submitted for academic purposes. The main goal of this paper is to determine whether it is the right time to buy or sell the stock for gain and loss. It is the indication of stock market investors to suggest if they will go long or short to hedge for profits rather than obtaining loss.

The buying and selling of stocks depend on how each investor thinks the stock market will go up or down today based on the movement of the stock Trak. In this case, I have chosen these companies because I once believed they had a long history of success in the stock markets. This paper will detail every step I took when I bought stocks and sold them to make a profit. Each stock market will determine the likelihood of obtaining a high or a low return yield during this term project.

There are eight (8) companies that I have searched for and believe will increase profits as their historical trading indicates through financial analysts about their performance in the stock markets. In addition, each company has historical data showing past stock performance, which I believe could give me a chance to buy and sell its shares for a profit. However, since I entered the stock trade, I have experienced that some companies I believe perform well do not keep steady performance due to some underlying business risk in the stock market. While some companies have been doing very well since day one, they have never gone down.

Therefore, based on the stock Trak, the companies I had decided to pick for buying and selling their shares of stocks are listed below according to their daily performances. Most of them do very well in the stock market.

Bank of America Corporation Equities: BAC
Al Air Lease Corporation Equities: AL
The Coca-Cola Corporation Equities: KO
Brinker International Inc. Equities: EAT
Wayfair Inc – Ordinary share – Class A: W
Caterpillar Inc. Equities: CAT
Home Depot Inc. Equities: HD
GameStop Corporation-Ordinary shares – Class A: GME.
For each of the hedging strategies:
Bank of America Corporation Equities (BAC),

I purchased 20 stock quantities @ $40.57 each in the long hedging, the futures contract because I decided to buy assets later. Similarly, the long hedging strategy has a short position in the spot market, and I decided to buy assets in the future. In the long hedge strategy risk, the spot market price will rise between now and then, and I will choose to purchase the investment. I once knew long-term hedging strategies gain in the futures market when contract prices increase.

In this case, the long hedge strategy was very successful. On the day I entered the future or extended position, the BAC never went below because of its market strategy. For the BAC, I used a purchase-sell limit because I wanted to make sure that I would maximize my profit. Using the sell limit, I would go above the market price so that when the price moves to the limit line, I have to execute the buying to maximize profit. As a result, the BAC has generated a 15.78% rate of return, which is very high.
“In October, BAC announced its commitment to providing the following summary.

As October 2021 approaches, we look back at the new preferred stocks and ETDs introduced during the month, offering annual yields ranging from 4.25% to 9.25%. Here is a comparison against our coverage universe’s highest quality preferred stocks, as ranked by our internal “CDx3 Compliance Score” metric. CDx3 preferred ranked 10 out of 10 while selling for an average premium to par of 7.56% and offering an average current yield of 5.18%. Past preferred stock IPOs now trading below par: a look at PSEC-A, from Prospect.” Capital.

https://seekingalpha.com/article/4463392-new-preferred-stock-ipo-october-2021?utm_source=quotemedia.com&utm_medium=referral.
The BAC has been consistent since the beginning of the stock trade. Its percentage return has substantially increased as the exchange continues, demonstrating less business risk.

The Al Air Lease Corporation Equities (AL):
It was the long hedging because the deal here is that I was purchasing 20 quantities of stock @ $39 each in the extended positions to sell them for the futures contract to gain more. It generated a 25.62% interest rate. The long hedge indicates that the expectation is to maximize profit in the future. I purchased the stocks from Al Air Lease Corporation equity (AL) for Trak. From the standpoint of view, Al has had a rocky road due to COVID-19. When the outbreak began, most airlines went through touch time because the U.S. government issued a warning about traveling out and to the United States, so all flights were put on hold, which sent shock waves throughout airline industries worldwide.

In this situation, the Air leasing performance has dropped significantly because of many factors, such as the government’s mandates and the COVID-19 threat. The quotations below indicate that Al Air Lease Corporation Equities (AL) has been going through a rough ride during the COVID-19 era.

“The volatile nature of the airline industry suggests that equity capital is also costly. If this is true in the United States, with relatively easy and cheap access to capital, imagine how much more difficult aircraft financing must be outside well-developed markets. Just 7% of Air Lease’s planes (measured by book value). About 44% are in Asia/Pacific (14% in China), 32% in Europe, 6% in Latin America, and 11% in the Middle East and Africa.

As of June 30, Air Lease owned 182 Airbus planes and 172 Boeing aircraft. The company has orders for 338 additional aircraft. About 93% of planes scheduled for delivery through 2022 and 80% through 2023 have been placed under long-term customer leases. A lease clause protects Air Lease with interest adjustments if rates rise before delivery.

The appetite for travel should return as the Covid pandemic subsides, and someone must own the planes. Fuel savings, noise restrictions, and comfort should also push the modernization of airline fleets. We believe Air Lease is the best-positioned lessor with the newest fleet, lowest overhead, lowest cost of funds, and best management team. Based on its order book and a recovery in the health of global airlines, we believe Air Lease can grow its sales by 16% and profits by 24% annually over the next five years, resulting in EPS as high as $10. If the high P/E of 11.4 applies, the stock price could reach $114. The potential annual return exceeds 23%, including a modest 1.5% dividend yield. However, we have seen a downside risk of 32% to $29, the average low of the last five years.” https://www.moneyshow.com/articles/dailyguru-57540/top-flight-team-helps-air-lease-soar/?qm=1.

In general, the above quotations explain that the Al Air Lease Corporation Equities (AL) had a serious business risk more than any other company during the outbreak in 2020 until it decided to change things around for the safety of its employees and customers by providing some alternative protocols to reduce COVID-19 infection.

The Coca-Cola Corporation Equities: KO:
I bought ten stocks @ $53.12 in the extended position because Coca-Cola Corporation Equities (KO) had been the leader in the stock market. I believed that purchasing its supplies would maximize my profits. It has generated a 7.00% rate of return. Coca-Cola Corporation Equities (OK) is a famous company worldwide, and buying a share of stock expected the price to increase. When I entered the trade, its performance consistently indicated a high percentage at the closing of the trade-in day.

“From an investment perspective, Coca-Cola shares trade at reasonable trailing 12-month and forward P/E ratios of 27.69 and 23.13, respectively. Therefore, given Friday’s reports, value investors could be intrigued to buy. On the other hand, analysts expect its earnings per share to grow at an average annual rate of about 10% over the next five years, making it an exciting option for growth investors. However, after rallying closer to the current 52-week highs, it could be too late to buy KO shares.

Source – Trading View
Technically, Coca-Cola stock trades within an ascending channel formation in the intraday chart. As a result, the stock rallied closer to overbought conditions, pushing the price toward trendline resistance. Therefore, investors could target potential pullbacks at about $54.77 or lower at $52.68. On the other hand, $57.97 and $59.92 are crucial resistance zones.” https://invezz.com/news/2021/10/29/should-you-buy-buffett-favourite-coca-cola-as-it-nears-bodyarmor-acquisition/.

The Brinker International Inc. Equities (EAT):
It is also a leader in the stock market, and so I purchased ten quantities of EAT’s share of stock @ $49.96 each in an extended position, expecting to sell them for a high price in the future to maximize my profits. Buying stock in a symbolic place suggested that I hold this asset for a long time to monitor the stock’s market price. If the price increases, I must execute the short position for profit. In this case, I bought an extended strategy to hedge for a better price in the stock market to maximize profit. The number of contracts is based on the spot asset value to be hedged and the number of underlying asset units in each contract. The strategy was successful because there was less business risk. However, due to its risk, it produced a 10.63% negative.

“The Company reaffirms the fiscal 2022 guidance released on August 18, 2021, and provides the following additional guidance for full-year fiscal 2022 as follows:
Total revenues are expected to be approximately $3.75 billion to $3.85 billion.
Net income per diluted share, excluding special items, is expected to be between $3.50 and $3.80.
Due to the uncertainties created by the ongoing COVID-19 pandemic and the resulting labor and supply chain disruptions, business performance forecasting needs to be revised. These uncertainties and other risks and uncertainties could cause actual results to differ materially from those projected.

In addition, we cannot reliably forecast special items such as restaurant impairments, restaurant closures, reorganization charges, and legal settlements without unreasonable effort.” https://investors.brinker.com/news-releases/news-release-details/brinker-international-reports-first-quarter-fiscal-2022-results.

Wayfair Inc – Ordinary share – Class A: is one of the most substantial companies’ investors buy and sell its shares annually to make profits. When I entered into the stock trade, I purchased 15 quantities @ $240.54 each of its stock through a hedging strategy. The percentage has never dropped since I joined the market. Wayfair Inc – Ordinary share – Class A (W)’s share of stocks is competitive in the stock market. On the day I entered the future, the spot price S0 equals $, the spot price St equals $, and the profit equals $. The strategy of hedging successfully generated a maximized profit in the simulation. Wayfair Inc. generated a 2.36% interest rate at the end of the trading period.

On Wayfair Inc.’s website, “Third Quarter 2021 Financial Highlights.

• Total net revenue of $3.1 billion decreased by $718.5 million, down 18.7% year over year
• U.S. net revenue of $2.6 billion decreased by $679.9 million, down 20.8% year over year
• International net revenue of $0.5 billion decreased by $38.6 million, down 6.8% year over year. International Net Revenue Constant Currency Growth was (12.1) %
  • Gross profit was $882.7 million or 28.3% of total net revenue.” https://s24.q4cdn.com/589059658/files/doc_financials/2021/q3/2021-09-30-Exhibit-99.1.pdf.
  
• Caterpillar Inc. Equities (CAT)—I purchased CAT’s share of stock using a limit-buy strategy, which means this strategy will be good until canceled. I knew that CAT was the limit-buy stock order market leader. As a result, I purchased 120 quantities at $196.74, which provides a required rate of return of 4.65% at the end of the trading period.
  “Caterpillar Reports Third-Quarter 2021 Results
  Third-quarter 2021 sales and revenues increased 25% to $12.4 billion
  Third-quarter 2021 profit per share of $2.60; adjusted profit per share of $2.66
  
• Strong balance sheet: returned $2.0 billion to shareholders through dividends and share repurchases in the quarter.”
  https://www.caterpillar.com/en/news/corporate-press-releases/h/3q21-results-caterpillar-inc.html.
  CAT’s business is growing because of the infrastructure bills and financial stimulation the government has provided to risky companies. Many companies are renting their equipment and machines for construction. The above quote is significant for investors who want to invest in the stock market.
  
• Home Depot Inc. Equities (HD) – When I entered the stock trade, I bought 135 quantities at $341.87 in a limit-buy order market. When I canceled, it generated a rate of return of 7.76%. This is a very high required rate of return that I obtained at the end of the trading period. The stock has a movement that never changed much during the tracking time. 7.76% is very substantial in maximizing profit. I knew HD was the leader in the limit-buy stock order trade market. This indicates that the strategy is very successful. “The Near-Perfect Portfolio for The Good Times and Bad.
  
• Each portfolio or strategy must be flawed. However, can a strategy work well in a bull market, a bear market, or a stagnant market, generate decent income, and conserve capital simultaneously?
  We also want our strategy to avoid the roller-coaster rides of index investing and have low volatility and limited drawdowns in deep corrections.
  Retirees and conservative investors need income, growth to meet inflation, and, most importantly, capital conservation. So, early last year, we introduced the Near-Perfect Portfolio (NPP) concept, which tries to do precisely that.
  
• Principles of NPP revolve around sustainable income, low drawdowns, capital preservation, and reasonable growth over the long term.” https://seekingalpha.com/article/4465404-near-perfect-portfolio-good-times-and-bad utm_source=quotemedia.com&utm_medium=referral.
  GameStop Corporation-Ordinary shares – Class A: GME – I had purchased 12 quantities at $213.40 in a buy order market. Since I entered the stock trade, GME has been losing substantially in the market. It yielded a negative return until I canceled it at the end of the tracking period. Its market is fragile, and many investors might have withdrawn from investing in GME. It seems like a good company to invest in, but it has turned out worse. I was buying GME’s stock share, thinking it would be profitable. Instead, it produced 0.07%, a negative rate of return at the end period.
  
• “Why GameStop Is Soaring 16% Higher This Week: Shares of GameStop (NYSE: GME) are soaring 16.2% higher this week, according to S&P Global Market Intelligence data. The company is riding along on renewed interest in meme stocks and continuing momentum that began two weeks ago. The video game retailer’s stock reversed a steady slide in its stock value beginning on October 22. It has been on an upward trajectory, besides a few minor dips. This past Monday, though, GameStop rose 3% after announcing its COO was leaving, and the company did not look like it would fill the position as other executives were assuming her duties. It followed that up on Tuesday after Bed Bath & Beyond suddenly grabbed investor attention.” https://www.fool.com/investing/2021/11/05/why-gamestop-is-soaring-16-higher-this-week/?source=quotemedia&utm_source=quotemedia&utm_medium=feed&utm_campaign=article.
  
• For each of the speculation strategies:
  Trak has used all trading strategies in stock to give different alternatives in which each trade maximized profit or loss. All the trading strategies have been up and down during the tracking period. Some trades have generated more yield, while others did not generate enough outcomes because of their market’s volatility. Depending on how I speculate on each stock, I primarily purchased or used buy or sell stock order types to determine whether the stock would produce a good result, or a worse scenario based on each day’s trading period. When I entered the trades, most companies I had chosen to buy and sell stocks were consistent, although the two companies had been trending downward substantially. The overall portfolio percentage was high, which showed the direction of generating a potential profit.
  
• Conclusion:
  In this term project, the stock Trak represents the motive of buying and selling stock trade through hedging or long and short positions depending on the stock markets moving per day during a week. The overall business risk that each company faces today is COVID-19 affecting employees. Not all employees, but those who get sick, and that causes a reduction in performance. However, thank the genius of science for producing vaccines to treat COVID-19. This vaccine breakthrough has mitigated the fear of getting sick and ending up in hospitals, and as many people are vaccinated, life is returning to normal. All businesses operate again as the U.S. Federal government provides recovery funds for companies affected the most during the first stage of the COVID-19 outbreak in 2020. This includes the stock market.
  
• Reference:
  https://seekingalpha.com/article/4463392-new-preferred-stock-ipo-october-2021?utm_source=quotemedia.com&utm_medium=referral.
  https://www.moneyshow.com/articles/dailyguru-57540/top-flight-team-helps-air-lease-soar/?qm=1.
  https://invezz.com/news/2021/10/29/should-you-buy-buffett-favourite-coca-cola-as-it-nears-bodyarmor-acquisition/.
  https://investors.brinker.com/news-releases/news-release-details/brinker-international-reports-first-quarter-fiscal-2022-results.
  https://s24.q4cdn.com/589059658/files/doc_financials/2021/q3/2021-09-30-Exhibit-99.1.pdf.
  https://seekingalpha.com/article/4465404-near-perfect-portfolio-good-times-and-bad?utm_source=quotemedia.com&utm_medium=referral
  https://www.fool.com/investing/2021/11/05/why-gamestop-is-soaring-16-higher-this-week/?source=quotemedia&utm_source=quotemedia&utm_medium=feed&utm_campaign=article.
  https://www.caterpillar.com/en/news/corporate-press-releases/h/3q21-results-caterpillar-inc.html.