Trading Tips Blog

E-commerce logistics firm GXO Logistics (GXO) has seen shares move in an uptrend over the past few months. One trader is betting that trend will play out over the next month. That’s based on the May $55 calls. With 31 days until expiration, 4,528 contracts traded compared to a prior open interest of 108, for a 41-fold rise in volume on the trade. The buyer of the calls paid $1.53 to make the bullish bet. GXO shares recently traded for about $52, ...
Read More About This

Many things in life have a first-mover advantage. However, in investing, the first company to come to the marketplace with a product isn’t always the winner. A company that follows up with a better product or a far lower price point can end up grabbing the most market share. That’s particularly true in the tech space. Today’s successful tech companies prefer to either buy a company on its way to winning, or wait until they can overtake the early movers. That makes ...
Read More About This

Christopher Hilger, a director at Donaldson Company (DCI), recently added 3,186 shares. The buy increased his holdings by 68 percent, and came to a total cost just under $200,000. This marks the first insider buy at the company over the past two years. Generally, insiders have been sellers of shares after exercising stock options. There have been a few outright sales a well, including one from the company President for 4,500 shares back in January. Insiders own 0.4 percent of the ...
Read More About This

Electronics retailer Best Buy (BBY) has been trending down in recent weeks. One trader sees shares continuing lower in the next two months. That’s based on the June $67.50 puts. With 60 days until expiration, 10,078 contracts traded compared to a prior open interest of 410, for a 25-fold rise in volume on the trade. The buyer of the puts paid $2.30 to make the bearish bet. Shares recently traded for about $73, so they would need to fall about $6.50, or ...
Read More About This

In a bull market, traders can profit by buying companies with an exciting story behind them. Those stocks tend to be runaway winners. But when the market is trading flat or down, the slow-and-steady, boring businesses can be the better winners. That’s because these companies can be more recession resistant. And they tend not to get as overvalued on the way up. That makes for a solid value play, and often one that pays out a solid source of growing income. One ...
Read More About This

Totalenergies Se, a major holder of Clearway Energy (CWEN), recently added 71,980 shares. The buy increased the fund’s position by  $2.42 million on top of its existing position. The fund last bought shares in mid-2021. Otherwise, trading has been relatively quiet, with 2 buys from a company director, and a sale from the company President and CEO back in November. Overall, insiders own about 1.1 percent of the renewable energy utility. Shares are down about in-line with the overall stock market in ...
Read More About This

Airline carrier Delta Air Lines (DAL) has pulled back in recent weeks, as fears of a slowing economy may soften demand for air travel. One trader sees a further downside in the weeks ahead. That’s based on the May $29 puts. With 35 days until expiration, 5,772 contracts traded compared to a prior open interest of 114, for a 51-fold rise in volume on the trade. The buyer of the puts paid $0.38 to make the bearish bet. Shares recently traded just ...
Read More About This

When an industry starts out, there may be dozens, if not hundreds of competitors. But, much like the automotive industry, eventually the space will consolidate into a few big players. Sometimes, that consolidation will occur through acquisitions. Other times, an economic crisis or two will also help to shake out weaker competitors. And consumer tastes and preferences may make it easy for a big player to stay big, even if newer companies try and grab market share. The shakeout in the cryptocurrency broker ...
Read More About This