Trading Tips Blog

Shares of Zillow (Z), the real estate aggregation website has been a top winner in the past few years. One trader sees the potential for a bear market in shares. That’s based on the January 2023 $80 puts. With over 680 days until expiration, over 15,000 contracts traded against a prior open interest of 226, a 66-fold jump in volume. At a current price near $125, shares would need to shed nearly one-third for this option to move in-the-money. The trader paid ...
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Many blue-chip companies have been faring well in recent weeks—especially the ones outside of tech. A few companies that have been seen as typical safe-havens during a market crisis have fared a little worse this time around during the pandemic. One such area has been beverage companies. While people have to drink, they don’t have to at restaurants, which tend to have higher profit margins on beverages. While that’s one area that’s lagged, analysts are starting to get bullish on the ...
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William Donovan, a director at Asa Gold (ASA) recently picked up 1,000 shares. The total cost came to just under $19,000. The buy doubled the director’s stake. This adds to a number of other buys from directors and the company’s President and COO over the past few months, with trades anywhere from a few hundred shares to 10,000 shares. The last sale by a company insider was in January 2020. The gold stock has slid to a six-month low as the ...
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Markets are forward looking. And when looking at retail plays, they see things getting worse, not better, for a number of big-box stores. Why? Same-store sales trends. The big players saw a surge higher as mom and pop stores closed, and that trend may unwind slightly, which could hurt future trends. That’s led to a number of big-name retailers decline even after posting great sales and earnings numbers. The latest victim of this trend is Costco (COST). The warehouse giant knocked its ...
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Cloud-based software giant Snowflake (SNOW) has seen shares drop over 40 percent from their peak in early December. One trader sees a potential move higher from here. That’s based on the April $250 calls. With shares around $240, it would take a $10 move higher for the trade to move in-the-money. Over 7,600 contracts traded, a 57-fold rise from the open volume of 134. The buyer paid about $17.05 for the contract. Shares of the company went public in September. Since inception, shares ...
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With the stock market in full meltdown mode, companies reporting great earnings numbers are being totally ignored. The chipmakers are one such place, where great earnings have been met with massive hits to share prices. While valuations may have been high going in to this correction, for growing companies dealing with more demand than can be met in the short-term, this looks like one of the first places in tech likely for a strong rebound. Case in point? Broadcom (AVGO). The company ...
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Robert Blue, President and CEO of Dominion Energy (D) recently picked up 14,402 shares. The buy came to $1 million. He was joined by director Mark Kington, who bought 2,000 shares a day later. Insiders have largely been sellers of shares in prior months. However, the share price has now slid over 20 percent from its peak, and this may be the start of a new policy of insiders taking advantage of volatile moves in the market. Shares of the utility ...
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Tech stocks have gone into full meltdown mode in the past week. That’s created some huge bargains as many names have given up year-to-date gains… or even further back. One trader sees a rebound in shares of Advance Micro Devices (AMD) by May. The activity is in the $92.50 calls. Over 7,500 contracts traded recently, a 45-fold jump in volume from the prior open interest near 166. The buyer paid about $2.20 to make the trade on average. The $92.50 strike would ...
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