Trading Tips Blog

Shares of rideshare giant Uber Technologies (UBER) have shaken off a pandemic-driven drop to rally to all-time highs in recent weeks. One trader sees shares moving even higher. That’s based on the activity in the January 2023 $75 calls. Over 2,550 contracts traded against a prior open interest of 148, for a 17-fold rise in volume. Expiring in 772 days, shares would need to rise about 40 percent to move in-the-money. The trader paid about $8.70 for the contracts. To make ...
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AJ Teague, co-CEO of Enterprise Products Partners (EPD), recently added 5,025 shares. The buy came to $100,000, and represents a 0.25 percent increase in the co-CEO’s holdings. This is the third buy from the co-CEO this year. Other insiders have also been active buyers throughout the year, including both directors and C-suite executives. Investors would have to go back two years to find the last insider sale, which was a small one relative to insider buying. Overall, insiders own an impressive ...
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Most companies rejected the conglomerate business model. Once in fashion, the logic was that a company would have a division that would thrive whenever a different one was out of favor with the market. That model just created a lot of headaches for management instead. However, there are a few surviving examples. Run properly, a conglomerate tends to be a relatively strong performer in a weak economy, but may take time to rally when an economy recovers. That may be the case ...
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One old-school technology company has been making a few acquisitions in recent weeks. Rather than play to the company’s core advantages, however, the recent buys point to a new direction for the firm. The direction is toward cloud-based communications. Specifically, this company wants smarter and faster customer engagement solutions, but that also includes interactive video, messaging, and voice channels. In short, a tech company best known from the 1990s is now working to outdo Zoom Video Communications (ZM) in video networking. The ...
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Elio Sceti, a director at The Kraft Heinz Co (KHC), recently picked up 90,000 shares. The buy is an initial stake in the firm, and the total purchase price of shares came out to $2.98 million. Insiders have a mixed trading record at the company, as 3G Global Food Holdings makes regular sales of millions of shares each year to reduce their stake. However, directors have been large buyers of shares overall in the past few years as well. The packaged ...
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Shares of uranium mining giant Cameco (CCJ) have risen in recent sessions. At least one trader expects that uptrend to continue. That’s based on the July 2021 $20 call options. Those options saw over 3,230 contracts trade recently, a 20-fold rise in volume from the prior open interest of 161. Expiring in 220 days, the options would move in-the-money if shares rose about 70 percent higher from their current price near $11.70. The trader paid $0.34 to make the trade. Shares have ...
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Gold prices jumped in 2020. For most of the year, the metal has outperformed the stock market. Since the start of October, gold prices have been trending down from their highs, but are starting to see some resistance to that drop. It’s likely that gold prices will continue their long-term uptrend into 2021, and with talk of more stimulus fueling fears of inflation and out-of-control government spending, traders may want to start placing their bets now for the next upswing in ...
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Shares of semiconductor giant Micron Technology (MU) have been soaring higher in recent weeks. Traders expect the trend to continue. The April 2021 $77.50 call option just saw over 8,450 contracts trade, against a prior open interest of 196. That’s a 43-fold rise in volume. The trader is betting that shares will rally another $4 from their current price near $73.50 in the next 130 days. The trader paid about $6.75 for the options. Over the past few years, shares of Micron ...
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