Trading Tips Blog

Investors who buy a company ahead of its acquisition or merger with another company can typically earn some great windfall profits. However, the acquiring company can sometimes be a buy. If it’s an industry leader, and the acquisition makes sense for its overall brand portfolio, the deal can likely add tremendous value over time. In some cases, however, an acquisition might not make sense, but in either event, shares of the acquiring company may drop on the news. Case in point? Oracle ...
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Richard Anderson, a director at Medtronic PLC (MDT), recently picked up 5,010 shares. The buy increased his stake by 4.5 percent, and came to a total price just over $517,000. This marks the first insider buy at the company since October 2020. Generally, insiders have been large and consistent sellers of shares, but have found some insider buying when shares have either recently dropped or look poised to move higher. Overall, insiders own a scant 0.2 percent of shares. Shares of the ...
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Shares of retailer Walmart (WMT) have been rangebound over the past month as concerns over the economy have weighed on what’s usually a great time seasonally for retailers. One trader sees the possibility for a move higher in the coming weeks. That’s based on the January $140 calls. With 24 days left until expiration, over 7,019 contracts traded compared to an open interest of 155, for a 45-fold surge in volume. The buyer of the calls paid $3.80 to make the ...
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There’s always a dance between a company and Wall Street analysts. When analysts throw out a number and a company misses, it’s an excuse for a large selloff in shares. However, that also sets up the opportunity for astute traders to pick up the pieces and profit. This expectation shuffle is a key part of trading earnings season, especially for traders who want to wait until after the numbers have been announced to make their move. Case in point? Adobe (ADBE). The ...
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William C. Ford, Executive Chairman at Ford Motor Co. (F) recently bought 412,500 more shares. The buy increased his stake by nearly 3 percent, and came to a total purchase price of just over $8.5 million. This marks the first insider buy at the company since February. Over the past year, a number of company executives and directors have been sellers of shares. Going back further, a large number of company insiders bought during the market crash in early 2020. Overall, insiders ...
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Shares of payments company Block (SQ), formerly Square, have been in a major drop over the past few weeks. One trader sees the possibility of a rebound in the next few months. That’s based on the March $185 calls. With 87 days left on the trade, 10,250 calls traded compared to a prior open interest of 417, for a 25-fold rise in volume. The buyer of the calls paid $10.48 to make the trade. With shares last trading near $165, they would ...
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The housing market is still looking bullish after its big move higher throughout the pandemic. While the rate of home sales and price increases may slow in the short run, a number of factors make this an attractive long-term market thanks to high demand and short supply. With interest rates remaining low and wages rising, home affordability is also likely to improve, even with recent price increases. That makes housing a solid long-term speculation going into 2022. However, short-term issues such as ...
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Matthew Ramsey, a director at Sunoco LP (SUN) recently picked up 2,500 shares. The buy increased his holdings by just over 3 percent, and came to a total price just under $94,000. This follows up on a 2,500 share buy from another director just two weeks ago. Prior to that, insiders have been both buyers and sellers at the energy firm, with insider buys far outweighing sales by insiders over the past three years. Overall, insiders own 34.5 percent of shares. Shares ...
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