Trading Tips Blog

With a number of areas removing Covid-related restrictions thanks to the availability of multiple vaccines, capital is likely to start moving out of these names and into other potential fast-movers. One such area might be adjacent, into the biotech space. Companies that focus on other health issues are likely to see increased interest now that the focus is shifting away from Covid. It’s an opportunity-rich environment. One such name is Regeneron Pharmaceuticals (REGN). Shares declined in the second half of 2020, but ...
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Big data giant Palantir (PLTR) recently saw shares surge from the mid-$20 range to the mid-$30 range as retail investors drove shares higher. At least one trader sees the move as played out. That’s based on the March 2021 $33 puts. Over 32,980 contracts traded against a prior open interest of 478, making for a 77-fold rise in volume. The trade expires in 52 days, and is close to where shares traded on Monday. The buyer of the contracts paid about $6.88 ...
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Allan Selig, a director at Oil-Dri Corp of America (ODC), recently added 1,000 shares to his holdings. The buy increased his stake by 2.2 percent, and came to a cost of just under $34,000. He was also the last company insider to buy shares in 2020, with a 1,000 share buy in October. Company insiders have been both buyers and sellers of shares in the past year, but the company Chairman has been a large net seller in that time. Overall, ...
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The energy industry has changed rapidly over the past decade. The growth of alternatives, and their improving costs, have made them viable compared to the use of fossil fuels. Even oil is under distress thanks to the rise of electric and hybrid vehicles impacting demand. It’s clear that fossil fuel companies need to embrace this change, and many already have. But even those with a small stake at a giant company can push through smart changes that improve sustainability and profitability. That ...
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Automaker Ford (F) has seen shares rally over 30 percent since the start of the year, from $8.50 to $11.50. One trader sees the move as too much, too quick. That’s based on the September 2021 $10 puts. Over 10,020 contracts traded, a 20-fold rise in volume from the prior open interest near 500. With shares at about $11.50, it implies a drop of nearly 15 percent for the trade to move in-the-money. The trader paid about $1.22 for the option. Shares ...
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Phillip Barrington, a director at Phillips 66 Partners LP (PSXP) recently increased his holdings by 3.4 percent with the addition of 1,445 shares. He paid just over $30,000 to do so. He was joined by director Mark Haney, who bought the same amount, paid nearly the same amount, and increased his holding by 4.6 percent. The similarity of these buys is likely a purchase related to their board duties, although Barrington did make several larger purchases last year on his own. Overall, ...
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Restaurant stocks have fared relatively well the past few months on news of a Covid vaccine rollout. While that’s still an ongoing concern, the big move higher for restaurant stocks suggests a pause right now. That’s the case with MKM Partners, who has reiterated a neutral rating for coffee chain Starbucks (SBUX). Given that “sell” is a four-letter word on Wall Street, even a neutral rating suggests poor performance ahead. The rationale for the move is that same-store sales are likely ...
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Shares of social media behemoth Facebook (FB) have rallied modestly in the past few days as the backlash against social media firms has started to recede. At least one trader sees shares heading fundamentally higher. That’s based on the June 2022 $320 calls. Over 9,400 contracts traded against a prior open interest of 193, for a 49-fold rise in volume. The option expires in 511 days. Shares trade near $272, and would need to rally about 17 percent for this trade ...
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