Trading Tips Blog

It’s been a tough year for retailers, as pandemic shutdowns have kept down physical, in-store traffic. While many have shifted online, a few retailers have struggled. However, with a growing overseas presence, a strong e-commerce platform, and an increasing range of products, one company already looks like a standout. That’s why shares just got an upgrade from Bank of America even after the stock has had a great run this year. The company? Lululemon Athletica (LULU). Shares are up a staggering 71 ...
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Traders are betting on shares of Bed Bath & Beyond (BBBY) to move higher into the holiday season. The December 18th, 2020 $15 calls saw over 3,100 contracts trade, about a 27-fold rise in trading compared to the prior open volume. With 78 days to go, and with shares currently just over $15, this option is at-the-money, and should move penny-for-penny higher with shares. The option trader paid about $2.50 per contract, so in order for the buyer to profit at expiration, ...
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Glenn Rufrano, CEO at VEREIT (VER), recently picked up 40,000 shares, shelling out just over $253,000 to do so. The buy increased his total holding to over 3,279,250 shares. Insider data shows that this is the first buy from company insiders in 2020. In 2019, insiders were sellers of shares at prices anywhere from 15 to 30 percent higher than the current price. A triple-net REIT with a focus on commercial properties such as restaurant parcels and drug stores, shares of ...
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Traders are betting on a big move lower in Alibaba (BABA). Over 2,300 contracts traded against an open interest of 133, making for a 19-fold rise in volume. The contracts were for June 2022 $275 puts. With shares trading around $278, these at-the-money puts should move penny-for-penny higher as the stock goes lower. The option has 625 days until expiration. This kind of big, at-the-money, long-dated bet suggests someone expects a drop in the price soon, offering a relatively safe way to ...
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William Smith, a director at Kinder Morgan (KMI) picked up 7,000 shares last month. That followed on a buy the week before by company Chairman Richard Kinder, who bought 373,233 shares. While insiders have largely been buyers this year, the weak performance of the energy space means that these insider buys are currently at a loss, with a double-digit decline since the buys. That spells an opportunity for investors following the trades today. With the massive insider ownership and ongoing buying ...
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Every sector has its winners and losers. Amidst a rapidly changing economic landscape, even the fast-food companies haven’t been immune. But some companies have fared well, even grabbing market share during this tumultuous time. Companies in the quick-service space that have seen an increase in traffic have done so with innovative marketing and by adding new menu items, rather than removing and scaling back right now. That’s the view of the fast-food analyst at Stifel, who sees the biggest beneficiary of ...
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Energy stocks have been poor performers this year. While oil prices have recovered from their short-term, fear-driven move into negative territory earlier in the year, the price of crude is still low. Even worse, energy stocks are down 50-60 percent or more year-to-date as low prices and demand, to say nothing of new technologies, continue to threaten the industry. That makes a new M&A announcement in the space welcome news… and a potential trading opportunity as well. The proposed merger is between ...
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Christopher Swift, the Chairman and CEO of The Hartford Financial Services Group (HIG), picked up another $251,000 worth of shares recently. The buy added 6,975 shares in total, or a 2.4 percent increase in the CEO’s holdings. Insider data at the company shows a mix of buys and sells. Most interestingly, however, the same CEO was a big seller of shares a year ago, when they traded 40 percent higher. Although shares are down substantially over the past year, revenues are ...
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