Trading Tips Blog

Shares of credit service provider Capital One Financial (COF) are down about 40 percent in the past year. One trader sees further downside in the coming weeks. That’s based on the October 28 $90 puts. With 21 days until expiration, 20,715 contracts traded compared to a prior open interest of 395, for a 52-fold rise in volume on the trade. The buyer of the puts paid $1.70 to bet on a further drop in shares. The stock recently traded for about ...
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Some companies are cyclical. Others are not, having steady demand for their products. While the former can have bigger moves during the right part of the cycle, slow-and-steady players tend to reward investors well over time. Examples include defensive companies like consumer goods. In that orbit are a number of similar industries that tend to have steady demand, even in a slowing economy. One such space is the restaurant industry. Consumers tend to downshift on dining out before giving it up entirely ...
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Marshall Lux, a director at New York Community Bancorp (NYCB) recently added 6,000 shares. The buy increased his holdings by over 72 percent, and came to a total cost just under $52,000. This marks the first insider activity at the company since June, when another director picked up 25,000 shares, for just under $232,000. Over the past three years, company insiders have exclusively been buyers of the stock, and all buys have come from company directors. Overall, insiders at the regional ...
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Shares of electric car manufacturer Tesla Motors (TSLA) are down about 40 percent from their highs of last year. One trader sees shares rebounding in the next 11 months. That’s based on the September 2023 $360 calls. With 344 days until expiration, 8,553 contracts traded compared to a prior open interest of 506, for a 17-fold rise in volume on the trade. The buyer of the calls paid $26.42 to make the bet. Shares last traded for just under $250 per share, ...
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Consumers tend to find companies they like, and then stick with them. That allows successful consumer companies to build an ecosystem of products, including those that need to be upgraded every few years. Investors who target these companies in a market downturn can fare well thanks to lower prices. And they can also get in ahead of a new piece of consumer tech, which may give shares a quick lift higher. One consumer tech leader is Sony Group (SONY). The electronics conglomerate ...
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Douglas Alexander, CEO at United Natural Foods Inc (UNFI), recently added 2,932 shares. The buy increased his holdings by 5.4 percent, and came to a total cost of $99,600. This is the second buy form the CEO this year, after a 3,438 share buy back in March. Otherwise, company insiders have largely been sellers in the past three years, with the last insider buying window occurring back in early 2020. Overall, company insiders own about 1.1 percent of shares. The specialty food ...
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Shares of payment processing company Block (SQ) are down 75 percent from last year’s peak. One trader is betting on an oversold bounce higher for the stock from here. That’s based on the November $55 calls. With 44 days until expiration, 7,752 contracts traded compared to a prior open interest of 193, for a 40-fold rise in volume on the trade. The buyer of the calls paid $7.13 to make the bullish bet. The stock last traded for about $62 so the ...
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The economy is slowing. But it’s not ending. While some companies may have liquidity issues or lose market share in the coming months from a slowdown, great companies will build on their success to thrive in the next bull market ahead. Investors looking to go long today should consider industry-leading companies that have leading brands. These companies tend to get better pricing, and therefore better protection from inflation. And they tend to have higher profit margins. Those are the perfect trends to ...
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