To The Moon

How badly is Blackrock affected by SVB collapse?

$BlackRock(BLK)$ BlackRock (BLK) is a renowned investment management company that manages over $9 trillion in assets. One of its notable investments is its 8% ownership stake in Silicon Valley Bank, which has recently collapsed, causing concerns for many industries. As Silicon Valley Bank was a crucial lender for early-stage businesses, climate tech, and medical research, the bank's collapse has sparked fears of a new financial crisis.

While many are focusing on how bank stocks are affected, it's worth looking at how investment management companies like BlackRock and $Berkshire Hathaway(BRK.B)$ Berkshire Hathaway might be impacted. These companies are large, diversified, and have a strong reputation, and have weathered many economic downturns and financial crises over the years. Despite experiencing some impact from events such as a bank collapse, they are likely better positioned than many other companies to manage and recover from any effects.

Is It A Good Opportunity To Pick Up Blackrock?

BLK forming a TD9 perfect buy

Today, technical analysis shows that the tom demark TD9 indicator is showing a perfect buy for BLK, and the Relative Strength Index (RSI) is in the oversold region. The TD9 indicator is a trend following indicator that identifies potential buying opportunities in a stock. It uses a combination of price and time to determine when a stock is likely to turn bullish or bearish. A TD9 buy signal is triggered when a stock's price falls for nine consecutive periods and is then followed by a period with a lower low and a higher close.

The RSI is another popular technical indicator that measures the momentum of a stock's price movements. It is used to identify overbought and oversold conditions in a stock. An RSI value of 70 or above indicates that a stock is overbought and may be due for a pullback, while an RSI value of 30 or below suggests that a stock is oversold and may be due for a rebound.

If one have a large account size with good margin, then he or she may consider picking up some BlackRock shares by selling Put Options above its short-term resistance level of 772.74 (see screenshot from tiger app above). This strategy allows the option seller to collect premium income while potentially acquiring shares at a lower price if the stock's price falls below the strike price of the put option.

Alternatively, for some one who do not have the margin requirement to sell options for BLK, I may consider buying call options at the strike price of 580, just below its support level around 583 based on a day chart (above). This strategy allows me to benefit from potential upside movements in the stock's price without having to buy the stock outright.

It is essential to note that due to the high per share price of BLK, the volume of options on BLK is quite low. With the market rebounding today knowing that the Swiss Financial Market Supervisory Authority and the Swiss National Central Bank (SNB) has stepped in to rescue $Credit Suisse Group AG(CS)$ Credit Suisse, the above options play look even better.

Always remember it is essential to perform thorough research and analysis before making any investment decisions. I.e. DYODD.

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