Trading Tips Blog

Wall Street loves hearing the words “recurring revenue.” That business model means receiving smaller sums from a customer, but on a regular, typically monthly, basis. Companies that move towards that model tend to be rewarded with upgrades. One big name tech giant has been lagging the market lately. But it’s been focusing on increasing its recurring revenue by developing a suite of services rather than focus on creating new hardware to sell to customers. That company is none other than Apple (AAPL) ...
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Semiconductor play Applied Materials (AMAT) has more than doubled since November. One trader sees the trend continuing. That’s based on the June $185 calls. Expiring in 72 days, over 9,000 contracts traded against a prior open interest of 150, for a 60-fold rise in volume. Shares would need to rise about 22 percent from their current price of $143 to close in-the-money at expiration. The buyer of the options paid about $3.10 for the contract. Thanks to a shortage in the semiconductor ...
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Stock buybacks have had mixed results. But companies that are able to buy back shares at this point in the economic recovery are likely companies that are doing something right. Case in point? Corning (GLW). The high-end glass supply company, responsible for products such as smartphone screens, is looking to buy back a 35 million share block held by Samsung Display. The block represents about 4 percent of outstanding shares. Shares of Corning moved higher over 3 percent on the news ...
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Cascade Investments, a major owner at Republic Services Inc (RSG), recently bought 10,055 more shares. The buy came to just under $1 million, and increased the fund’s holdings by 0.01 percent. Cascade Investments is the fund managing the stock market investments of Bill Gates. This is the first insider buy since late 2018. Insiders have mostly been sellers since then, particularly C-suite executives. Among company insiders, less than 0.2 percent of shares are owned. Shares of the waste management company have ...
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Investing is often about reverting to the mean. After one asset soars higher, another is likely out of favor. That will generally change as traders book profits in one area and look for a new trend underway. A quiet trend has been going on with gold. Prices fell under $1,700 in early March, and have started to show some strength again. As investors look to alternatives to gold such as Bitcoin, the metal has gotten oversold, but is starting to move ...
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Gary Kiedaisch, a director at Purple Innovation (PRPL) recently picked up 5,000 shares. The buy increased his holdings by 12 percent and came to a total purchase price of $150,000. That’s the first insider buy at the company since March 2020. Insiders have typically been sellers over the past year, including a multimillion share sale from a prior major owner. Insiders at the company now own just under 0.5 percent of shares. That’s too bad, as those insiders missed out on ...
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Shares of finance company Capital One Financial (COF) have been in a steady uptrend for the past few months. One trader sees the potential for a continued rally higher. That’s based on the June 2021 $150 calls. With 76 days left to trade, and with shares near $130, shares would need to rise another 15 percent for the option to move in-the-money. Over 4,640 contracts traded, a 39-fold rise from the prior open interest of 119. The trader paid about $2.04 for ...
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While the pandemic caused a shift to working from home and made companies like Zoom Communications (ZM) a household name, other trends played out as well. Spending more time in the home, consumers started spending more on home goods. That’s a trend that looks likely to continue as the economy recovers and incomes rise. For those on the higher-end of the economic scale who were relatively unaffected, it bodes very well for high-end furnishing companies. One big player? Williams-Sonoma (WSM). The company ...
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