Trading Tips Blog

Shares of electric truck manufacturer Nikola Corporation (NKLA) are down 80 percent over the past year. One trader sees a further decline ahead. That’s based on the January 2024 $2 puts. With 379 days until expiration, 40,037 contracts traded compared to a prior open interest of 967, for a 41-fold rise in volume on the trade. The buyer of the puts paid $1.08 to make the bearish bet. Shares recently traded for about $2.20, so the stock would need to drop about ...
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Last year’s bear market likely isn’t quite over yet. However, many stocks that were fairly valued are now bargains. And they could start moving higher in the months ahead as the bear market reaches its peak. In that kind of environment, there will be a quick jump higher for nearly all stocks. But the best performers will come from those companies that are industry leaders, and will be more sustainable than just a jump higher. For instance, right now investors are skeptical ...
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Pershing Square Capital Management, a major owner of Howard Hughes Corp (HHC), recently added 6,154 shares. The buy increased the fund’s holdings by under 1 percent, and came to a total cost of just under $460,000. That was the fund’s fourth buy in the span of a month, following large purchases including a 1,560,205 share but and a 657,160 share buy. Overall, the fund has increased its stake by over 15 percent in the past month. Overall, Pershing Square owns about 32 ...
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Shares of drug manufacturer Novartis (NVS) are slightly up over the past year. One trader sees a further rally occurring in the first half of the year. That’s based on the July $85 calls. With 197 days until expiration, 3,071 contracts traded compared to a prior open interest of 119, for a 26-fold rise in volume on the trade. The buyer of the calls paid $8.30 to make the bullish bet. Shares recently traded just under $91, meaning the options are more ...
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There are many ways to value a company. For an industry with only a few players, one key metric is market share. That’s because when there are just a few companies in an industry, it’s growth is largely over. So what matters most is being able to grow by getting consumers to switch. In a slowing economy, companies focusing on growing their market share could be solid winners… and could also show investors which companies to avoid right now. For instance, dating ...
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Roxanne Austin, a director at CrowdStrike Holdings (CRWD), recently added 25,000 shares. The buy increased her holdings by 62 percent, and came to a total cost of just under $2.5 million. This marks the first insider buy since back in June, when another director picked up a mere 81 shares. Otherwise, company officers and directors have largely been sellers of shares, following the exercise of options. Overall, company insiders own 1.3 percent of shares. Shares of the cloud services protection company have ...
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Shares of oil and gas major Occidental Petroleum Corporation (OXY) are up 112 percent over the past year. One trader sees a pullback coming in the next 18 months. That’s based on the June 2024 $50 puts. With 534 days until expiration, 5,001 contracts traded compared to a prior open interest of 101, for a 50-fold rise in volume on the trade. The buyer of the puts paid $6.45 to make the bet. Occidental shares recently traded for about $62, so ...
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Any successful company will eventually struggle with slowing demand. Those that are successful are able to turn around a declining situation. But many “turnaround” stories are just that – stories. It’s crucial for investors to be able to separate true turnarounds from talk of improvement. That’s why investors should wait for trends such as improving profit margins or improved earnings before waiting to invest in such a story. One surprising story from 2022 has been that of Netflix (NFLX). The company struggled ...
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