Trading Tips Blog

Investment brokerage firm The Charles Schwab Corporation (SCHW) has lost about a quarter of its value in the past year, as slowing trading has reduced revenues. One trader sees the potential for a further decline in shares in the weeks ahead. That’s based on the June 2 $40 puts. With 35 days until expiration, 12,066 contracts traded compared to a prior open interest of 216, for a 56-fold rise in volume on the trade. The buyer of the puts paid $0.32. Shares ...
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As an investment, companies with few competitors are better than companies with many competitors. That’s because competition tends to keep prices low and innovation high. That’s good for consumers, but not healthy for companies – or their shareholders. That’s why companies with a handful of competitors tend to be more consistently profitable. That can keep share prices generally rising over time, and with lower volatility. These companies also tend to make for attractive income plays. When it comes to the oligopoly space, ...
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Alan Colberg, a director at US Bancorp (USB), recently bought 10,000 shares. The buy increased his position by over 1,000 percent, and came to a total cost of $341,380. This marks the first insider buy at the regional bank in over two years. Otherwise, company executives, including the company CEO and CFO, have been regular and steady sellers of shares, largely after stock options have vested. Overall, insiders own 0.2 percent of shares. The regional bank has lost about one-third of its ...
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Cruise line operator Carnival Cruise Lines (CCL) has been rangebound for several months after a big drop nearly a year ago. One trader sees shares trending lower in the coming weeks. That’s based on the May $8.50 puts. With 22 days until expiration, 5,310 contracts traded compared to a prior open interest of 100, for a 53-fold rise in volume on the trade. The buyer of the puts paid $0.31 to make the bearish bet. Shares recently traded for about $9, so ...
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A great company can overcome any economic challenge. To be a great company, it’s necessary to have pricing power. That means avoiding having to cut prices during a slow period. And it means when inflation is running hot, prices can be raised over and above. Such companies are few and far between. But harnessing the power of a brand during a slow or sideways market can help lead to great returns over time, both from capital gains, and from growing dividend ...
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Gerald Libin, a major holder of Riley Exploration Permian (REPX), recently added 3,000 shares. The buy increased his stake by less than 1 percent, and came to a total cost of $131,370. This marks the first insider buy since last October, when Libin was also a buyer of just over $273,000 in shares. Over the past few months, several company insiders have sold, including the company President and the company CEO. Overall, insiders own 40.2 percent of shares. The oil and gas ...
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Brazilian iron ore producer Vale (VALE) is down 12 percent over the past year and 25 percent off its peak. One trader is betting that prices will fall further in the months ahead. That’s based on the July $14 puts. With 86 days until expiration, 6,721 contracts traded compared to a prior open interest of 211, for a 32-fold rise in volume on the trade. The buyer of the puts paid $0.88 to make the bearish bet. Shares recently traded for about ...
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While we’re coming up on the next Fed meeting, which could give a sign that the central bank’s interest rate hikes are finally over, we’re not out of the woods yet. Inflation has slowed over the past year, but it’s still running at 5 percent. That’s one of its highest levels in decades, and more than twice the central bank’s inflation target. Investors should still look for companies that can handle inflation by passing on the costs to their customers via ...
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