Trading Tips Blog

With retail numbers beating expectations on Friday, a number of analysts were quick to upgrade the sector. The retail analyst at Cowen & Co., however, sees that many retailers have already been trending higher before these numbers were reported. Even so, many retailers, particularly big-box plays, are likely to continue heading higher. Those stores should benefit from the trend of consumers making their buys in as few locations as possible during the pandemic. Cowen’s analysis specifically looks at Wal-Mart (WMT), Target ...
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Over 5,300 contracts traded on a January 2023 $4 call option on General Electric (GE). That’s a 19-fold rise in volume against the prior open interest of just 285 contracts. The option, expiring in 823 days, is over $3 in-the-money, given the current share price at $4. For the option buyer to profit at expiration, shares need to trade at $8 or higher. The trade comes as GE continues to struggle, as profits from its aviation division have dried up, leading ...
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Some of the top-performing stocks of the past year have a lot in common. Many are known as “big tech” names due to their size. And they’ve performed well thanks to the fact that they’re been well-positioned to increase market share and profitability during the pandemic. These companies are also wildly overvalued by any traditional measure, whether by earnings, sales, or asset value. But one manager sees some big tech names heading even higher. London-based fund manager ValuAnalysis see the trio of ...
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Over 2,000 contracts traded on January 2023 $30 puts on Wells Fargo (WFC). That’s a 16-fold increase in interest given the prior 122 open contracts in the trade. The puts, which are about $7 in-the-money, expire in 826 days. The long-dated trade, known as a LEAP, is a bet that the bank’s shares will head lower. The trader paid just over $10.00, so shares will need to trade under $20 at expiration for the trade to profit. Shares of the megabank are ...
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Daniel Solomita, President and CEO of Loop Industries (LOOP), recently bought 10,000 shares. The buy increased his stake by 5 percent, and came to a cost of just over $73,000. He was joined by the company CFO, buying 5,000 shares. Two directors have also been buyers in recent days, each picking up 10,000 shares in the low $8 range. This cluster of insider buying has occurred as shares have been cut nearly in half in the past month. The last insider ...
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Over 3,200 contracts traded on the February 2021 $30 calls on Social Capital Hedosophia Holdings Corp (IPOB). That’s a 28-fold increase in volume from the prior number of open contracts near 117. With shares trading around $26, shares need to rally about 15 percent for the option contract to move in-the-money. The call buyer paid about $3.10 on average for the options, which expire in 127 days. IPOB is a SPAC, a specialty purpose acquisition company. Also known as a “blank ...
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Ares Trading, already a major holder in Precigen (PGEN), recently added another $25 million investment. At that price, the company was able to pick up 6,758,400 shares. That’s a 32 percent increase to the fund’s stake in the company. The move dwarfs the insider sales in the past month from company insiders. The buy comes as shares of the company have dropped from $15 to under $4 in the past two years. Insiders, including Ares Trading, own over 15 percent ...
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J.P. Morgan just updated an electric vehicle company. Not only that, but the investment bank gave a price target more than double where shares were trading at the time. That’s a bullish call, and a justified one. That’s because the bank expects the electric vehicle market to continue growing substantially, possibly as much as four times higher in some markets. And, no, the company isn’t Tesla Motors. The company is NIO (NIO), the Chinese play. Although the company isn’t profitable yet ...
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