Trading Tips Blog

Citigroup recently upgraded one major consumer goods play following a strong earnings beat. Thanks to stay-at-home trends, this company has fared relatively well, even better than peers. That’s led to the view that this company will continue to show strong growth into 2021. Even better, this company lags competitors in terms of operating margins. As a result, shares look likely to offer multiple expansion as well, which could lead to even bigger returns. The company? PepsiCo (PEP). Best known as the second-largest ...
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Richard Anderson, a director at Medtronic PLC (MDT), recently added 4,607 shares. The buy came to a total purchase price of nearly $51,000, and increased the director’s stake by 4.4 percent. This is the second insider buy of 2020, following a buy from the company CEO back in February. Insiders have been a mix of buyers and sellers this year. The share price of the company has held up relatively well in the past year. Although sales and earnings are slightly off ...
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Nearly 9,100 contracts traded on the June 2021 $640 calls on Tesla Motors (TSLA) recently. That’s a 12-fold rise over the prior open interest of 766 contracts. The trade, expiring in 248 days, would require shares to rally about 45 percent from their current price. The option buyer paid about $51.90, or $5,190 per contract to make the far out-of-the-money trade. Shares of the company have been one of the top performers in the past year. While a 45 percent move in ...
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James Filler, a major owner at Century Bancorp (CNBKA), recently added 1,002 shares to his stake. A mere 0.12 percent increase, the $69,000 buy increased his holdings to over 848,000 shares. This follows on top of some small share buys from company executives earlier in the month, although Filler has been the major buyer of shares in the past year. The Massachusetts based-bank has 27 offices in the state. Shares have shed 21 percent in the past year, as the decline ...
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Nearly 2,100 contracts traded on the November 20th $110 puts on Xilinx (XLNX) recently. The trades amounted to an 18-fold rise in volume on the trade based on the prior open interest of 114 contracts. Expiring in 39 days, the trade is a bet that shares will shed about $9 from their current price near $119. Shares of the tech company soared on Friday on the announcement that Advanced Micro Devices was in advanced talks to buy the firm. The buyer of ...
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Industrial companies have been out of favor plays in this market. Some companies have fared even worse, having struggled even while the economy was looking rosy. One of the most unloved names in the space just got a major upgrade with a potential 50 percent move higher in the next year. In fact, an analyst at Goldman Sachs just called this company the “ultimate self-help, vaccine-leverage story,” in the sector. That company? General Electric (GE). GE has spent the last two ...
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In spite of a recession in 2020, consumer spending has held up well… at least in grocery stores and other essential retailers. That’s been borne out by the market-beating returns in many big-box stores, as specialty retailers like clothing companies have been hard-hit. That’s a trend likely to continue, and a few companies are working to perform even better going forward. That’s the view of BMO, where the portfolio manager of the company’s Low Volatility Equity Fund sees many big consumer-facing ...
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Over 4,100 contracts traded on May 2021 $16 calls on American Airlines (AAL). That’s a 40-fold rise in volume from the prior open interest near 100 contracts. The bet, expiring in 224 days, would require shares to rally to $16 from their current price near $13.50. That’s about an 18.5 percent return. The trader paid about $2.70 for the contracts on average. This bet comes as the airline industry struggles to reach passenger traffic one-third the level of this time a year ...
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