Trading Tips Blog

Cybersecurity software company Rapid7 Inc (RPD) has seen shares rally more than 50 percent off of their lows set back in November. One trader sees a further rally in the months ahead. That’s based on the August $55 calls. With 100 days until expiration, 5,327 contracts traded compared to a prior open interest of 191, for a 28-fold rise in volume on the trade. The buyer of the calls paid $5.67 to make the bullish bet. Shares recently went for about $47, ...
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While traders are often looking for a quick trade, many so-called investors are often looking for a stock that can move higher quickly. By focusing instead on companies that can deliver steady, long-term growth, however, they may fare better than getting on the wrong side of a growth story that goes bad. These long-term plays can often by found by being household names, which may indicate a strong brand. Or they may be dividend payers. Often, they’re both. One household name that ...
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A cluster of insiders picked up shares of Keurig Dr Pepper (KDP) last week. That includes the company’s CFO, who bought 5,074 shares at a cost of $165,511. And the firm’s Chief Supply Chain Officer bought 12,000 shares, paying just under $394,000. The company’s R&D Officer bought 8,561 shares at a cost of $276,948. And finally, the company’s General Council topped them all with a 13,957 share buy costing $458,612. Overall, company insiders at the global beverage firm own about 35.6 ...
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Financial technology software company StoneCo (STNE) is up about 50 percent over the past year. However, one trader sees the potential for a big selloff by the end of the year. That’s based on the January 2024 $8 puts. With 255 days until expiration, 10,027 contracts traded compared to a prior open interest of 101, for a 99-fold jump in volume on the trade. The buyer of the puts paid $0.58 to make the bearish bet. The bet comes as shares ...
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While earnings are the most important part of earnings season, they’re simply a yardstick that considers different accounting measures across different sectors. A different measure, cash flow, can give a sense as to a company’s ability to start and grow a dividend, buy back shares, or otherwise reward shareholders. That cash flow may not always pass down to earnings. But for a poor investment, it’s often true that earnings will look higher than cash flow indicates. With a slowing economy and slow ...
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Kevin Stephens, a director at Crown Castle Inc (CCI), recently added 1,000 shares. The buy increased his holdings by 7 percent, and came to a total cost of $117,996. The director was also the most recent buyer of shares, with a 2,000 share pickup in October 2022 that cost $247,000. One other director has been a buyer in the past year. Two company insiders were sizeable sellers of shares in April. Overall, company insiders own 0.4 percent of the cell tower ...
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Biotech company Gilead Sciences (GILD) has had a strong year, with shares up 30 percent. However, shares have started to trend lower in recent sessions, and one trader sees a further drop ahead. That’s based on the November $60 puts. With 193 days until expiration, 3,922 contracts traded compared to a prior open interest of 100, for a 39-fold rise in volume on the trade. The buyer of the puts paid $1.09 to make the bearish bet. Shares recently went for about ...
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A company can have a great product. Or a great marketing team. But if management isn’t good… the company will falter. Even a manager who knows to step aside for the team is better than an executive who makes the wrong decisions and ignores what the staff has to say. This can translate into great stock returns… or poor ones. So all said and done, company management is a key factor, even though it doesn’t show up on the balance sheet. Investing ...
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