Airbnb (Fall '24)

In this pitch, we learn about covered calls, a strategy that involves owning the underlying asset and selling a call option on the underlying. The goal of this option is to hedge against downward movement in the stock price while, in reverse, making the most profit if the stock price rises but not above the strike price of the sold call. We also went over activity in the markets after election night and the Trump win. In our Airbnb (ABNB) pitch, we decided that the stock will have a lot of volatility after their earnings call on 11/7 and will be levering up on long straddle positions to capitalize on the stock movements in either direction.