Trading Tips Blog

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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Shares of telecom company Verizon (VZ) have been in a downtrend in recent weeks. However, one trader sees shares bouncing higher in the next month. That’s based on the February $57 calls. Over 21,050 contracts traded, a 152-fold rise in volume from the prior open interest of 138. With 29 days to expire, the trade is right at-the-money, as shares recently dipped under $57. The option buyer paid $1.24 on average. Shares of the telecom are down about 5 percent over ...
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Robert Henkel, a director at Owens & Minor (OMI), recently added 1,000 shares to his holdings. The buy increased his stake by 5 percent, and came to a cost just over $27,000. Over the past year, company directors have been buyers of shares, picking up over 100,000 shares by a number of directors. One company Vice President has been a seller of shares in the past year, at a lower price than where shares trade today. Overall, insiders own about 3 ...
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Healthcare companies have seen renewed interest in the past year due to the Covid pandemic. But as capital flooded into the space, some companies fared better than others. Those best prepared for developing a vaccine for Covid have had excellent returns, while companies working on other pressing healthcare issues have struggled. A number of firms working on prospective drugs and treatments look set to have an excellent year as Covid recedes. That could offer traders market-beating opportunities. Case in point? Gilead Sciences ...
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Shares of beverage giant Coca Cola (KO) have been in a downtrend in recent weeks. At least one trader sees a potential for a further long-term decline. That’s based on the January 2023 $42.50 puts. Expiring in 730 days, the trade will move in-the-money if shares drop about 15 percent from their current price near $48.50. The trader paid about $4.33 on average to get into the trade. Traditionally seen as a defensive play in weak markets, Coca Cola has seen its ...
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