Trading Tips Blog

It can be difficult for inexperienced investors in a bearish climate if they don’t know options, futures, or have never shorted stock. The motivation behind creating inverse ETF products was to allow investors to simply buy shares and make money in the market sells off. In addition to making money as the market declines, companies have been able to add leverage that is two to three times the daily movement of the underlying. Here are five inverse and leveraged ETFs ...
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Some of the best stocks on the stock market are recession proof investments, or companies that can perform well in a bear market. Each bear market is different, but include a major stock market crash, from the tech bubble bursting to the Great Recession of the financial crisis to this year’s Covid Crash. But there are a few qualities that apply to recession proof stocks. They’re companies that are capable of growing their revenues and earnings over time, while also providing ...
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Normally, a selloff in the market would claim retail companies as one of its victims. However, the selling on Thursday and Friday of last week didn’t have the same breadth of selling that the market experienced on June 11. On Friday, the option market bulls looked toward Kohl's Corporation (NYSE: KSS) as a surge in bullish option activity helped lift the stock price by 2.44%
Kohl’s is joining a handful of other companies that are being added to the ...
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Last month brought on the selling from insiders as executives sold $6.7 billion of stock in August. The ringing of the cash register with the market at a high isn’t exactly a terrible thing, but it’s a reflection of the perception of valuation. A company that saw a lot of selling activity and notional value by insiders came from Bill.com Holdings Inc (NYSE: BILL) as the stock is falling from its 52-week high. According to the Financial Times, the ...
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In a volatile period like we just experienced last week, it can be hard to know where to look at investing. Using option activity can help you see where large trades being made and helps identify a direction, timeframe, and magnitude of the expected movement. While nothing is 100%, it is an important indicator that can be used to find opportunities. The following seven companies experienced multiple days with bullish unusual option activity. Unusual Option Activity Stock #1: General Motors Company ...
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When the market normally sells off, the Consumer Staples sector typically outperforms the S&P 500. Thursday’s performance reflected the same thing as the Consumer Staples Select Sector SPDR Fund (NYSEARCA: XLP) finished only 1.72% lower and the S&P 500 index finished 3.51% lower. While XLP outperformed on Thursday, this may not be the case in the coming months. Option bears came into XLP and are looking for significantly more downside by March. The Consumer Staples sector has been performing similarly ...
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Some companies see a continuous flow of insider selling for many years. Sometimes they are newer companies where major shareholders cash out. As a result, the steady stream of selling can mask over more significant periods of selling. That’s where looking at the number of shares sold, and the number of transactions can be helpful to identify periods of significant selling. For Vivint Solar Inc (NYSE: VSLR), insiders escalated their sales and shares to historic levels just before Thursday’s ...
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A volatile session of selling like yesterday can be a good time to see who’s moving. Identifying rising stocks as the rest of the market is panic selling identifies potential opportunities. It’s probably not a surprise to see companies that have generally underperformed stand at the top of the heap. This is especially true when these names have had a flurry of bullish stock and option activity. Thursday didn’t disappoint in this regard as many “reopening” names outperformed. Here are ...
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