Schwab (SCHW) – Net Interest Challenge – May 6th, 2020
Options Edge: Credit collects 43% of Width
The neutral DailyPlay for Wednesday, May 6th is Schwab (SCHW). SCHW has rallied almost 30% from March lows, but remain challenged as net interest provides downside pressure on revenues.
- Rates have remained low providing strong downside pressure on revenues
- $0 Commissions, lower fees provide further challenges to revenue growth
- USAA & TD Ameritrade integration synergies not expected this quarter
- SCHW’s 1M and 6M trend has turned neutral on March 1st.
- SCHW broke below its $35 support level
- Neutral relative strength score (5 out of 10)