Trading Tips Blog

Shares of iron ore producer Cleveland-Cliffs (CLF) have lost 40 percent of their value in the past year, more than double the drop in the S&P 500. One trader sees a further decline ahead. That’s based on the March 2023 $9 puts. With 137 days until expiration, 6,374 contracts traded compared to a prior open interest of 117, for a 54-fold rise in trading volume. The buyer of the puts paid $0.41 to get in. Shares recently traded near $14, so ...
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One trend this earnings season has been a number of companies impacted by the strength of the US dollar in currency markets. As a result, multinational companies are reporting headwinds, as a strong dollar makes them relatively more expensive in local markets. That trend will end in time, and may even shift quickly once monetary policy stops tightening. As the trend reverses, companies that have been adversely impacted will suddenly benefit. Among multinational companies holding up strong right now is Mondelez International ...
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Kevin Stephens, a director at Crown Castle (CCI), just added 2,000 shares. The buy increased his holdings by nearly 19 percent, and came to a total cost of $247,000. The buy came a few days after another director bought 1,215 shares for an even $150,000. Over the past three years, there’s been a generally equal mix of insider buys and sells, with company directors likely to be buyers and executives likely to be sellers. Overall, company insiders own 0.4 percent of ...
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Shares of gold mining operation AngloGold Ashanti (AU) are down 32 percent in the past year, amid a drop in gold-related stocks overall. One trader sees the potential for a surge higher at some point in the next six months. That’s based on the April 2023 $18 calls. With 175 days until expiration, 2,050 contracts traded compared to a prior open interest of 128, for a 16-fold rise in volume on the trade. The buyer of the calls paid $0.68. Shares recently ...
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In a bear market, smart investors buy. They know that great companies get sold off with overpriced ones during a market selloff. And buying great companies ensures better returns than chasing great companies higher during a bull market. Investors who follow this strategy can build a solid portfolio of blue-chip stocks in any sector. Right now, many great tech names have been hit the hardest. Of those tech stocks, there are some compelling valuations in companies that simply dominate their market. It’s ...
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Kimberly Swan, a director at The First Bancorp (FNLC), recently added 1,000 shares. The buy increased her holdings by nearly 15 percent, and came to a total purchase price of just under $30,000. This is the first insider buy at the company since last December, when the director made a 5,000 share buy. Other company insiders have been buyers in the past three years, including the company President & CEO. The last insider sale occurred in the summer of 2020. Overall, Read More About This

Shares of software feedback company Momentive Global (MNTV) are down 70 percent in the past year. One trader sees a move higher in the coming weeks. That’s based on the December 16th $9.00 calls. With 50 days until expiration, 8,228 contracts traded compared to a prior open interest of 103, for an 80-fold rise in volume on the trade. The buyer of the calls paid $0.58 to make the bullish bet. Shares recently traded for about $8, so the stock would need ...
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It’s no surprise that when the economy is slow, consumers and companies scale back on their spending. And there’s a whole world of defensive industries that tend to fare well no matter what the economy is doing. While trade and commerce may slow during a recession, goods still need to move from their manufacturing point to the end user. And right now, the only way for goods to reach their final point is by truck. That bodes well for Paccar (PCAR). They’re ...
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