Good morning dear community!

In addition to the already posted sale of the $KLAC (-4,11 %) derivative with a nice profit, I have also sold the derivative on $MS (-4,08 %) as there was also a very strong rise there yesterday.

It is very classic and rather boring. It concerns $MS (-4,08 %) .

In recent years, Morgan Stanley has developed into the quality bank par excellence. While other financial institutions are still heavily dependent on cyclical investment banking, Morgan Stanley has undergone a fundamental change.

The Wealth Management business is at the center of this transformation. This area achieves operating margins of over 30 percent, while most competitors operate in the low to mid-twenties. What is special is the type of revenue. Morgan Stanley receives a percentage of assets under management as a fee. This income is predictable and recurring. Unlike in investment banking or trading, fees flow continuously, regardless of economic cycles or market volatility.

The strategic acquisition of E*TRADE has further strengthened this position and created access to a younger, digitally savvy clientele. These clients are at the beginning of their wealth creation journey and will generate fees for decades to come. At the same time, Morgan Stanley is benefiting from the recovery in investment banking. After years of restraint, mergers and IPOs are returning. Interest rates have stabilized and the willingness for large transactions is increasing. CEO Ted Pick describes this as a "flywheel effect". A merger often leads to share issues, which in turn bring in new corporate clients who later carry out their own transactions. Once this flywheel gets going, it reinforces itself.

The combination of stable wealth management and cyclical investment banking recovery makes Morgan Stanley exceptional. The bank has a foundation of recurring, highly profitable revenues while benefiting from the upturn in the capital markets. The share is in a stable upward trend.