Trading Tips Blog

Traders bet on rally in oil giant. $18 call options expiring in March on Petroleo Brasileiro (PBR), also known as Petrobras, saw an 8-fold rise in volume, going from 916 open contracts to having over 7,000 trade hands. The bet, expiring in 67 days, is that shares, just under $16 right now, can head higher by at least $2 at expiration, or about 12.5 percent. Buyers of the option paid just $0.19, or $19 per contract, an inexpensive bet for shares to head ...
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Traders bet on rally in next month. The February $65 call options on The TJX Companies (TJX) saw nearly 8,900 contracts trade hands. With a prior open interest of just 160 contracts, that’s a 56-fold rise in volume. Traders are betting that the company, currently trading around $62.50, to rally another $2.50 in the next 42 days until expiration. The traders paid just $0.65 for the trade, so shares would need to trade a bit closer to $66 at expiration to profit. The TJX ...
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With the new year comes new trading opportunities. One method traders use to take advantage of the new year is to screen for companies that underperformed in the prior year. Buying these “dogs” tends to make for a market-beating year, on average. Trading Tips’ Andrew Packer explains in our latest video ...
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Traders see a big rally in the first half of the year. The June 2020 $52.50 call options on The Charles Schwab Corporation (SCHW) saw a 10-fold rise in volume, going from 340 open contracts to over 3,475 contracts trade hands. As shares trade closer to $47.50, traders are betting on at least a 10 percent rally in shares before the option expires in the next 162 days. The traders also paid about $1.30 for the contracts on average, meaning shares would need ...
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Traders make in-the-money bearish bet. The March 20th 2020 $14 put options on General Electric (GE) saw a 12-fold rise in volume, going from 855 open contracts to just under 10,000 contracts. The trade, expiring in 72 days, is a bet on shares to decline. But with GE shares around $12, the option is $2 in-the-money, and should increase in value dollar-for-dollar with any decline in GE shares. The option trader paid $2.09, so the option has very little time premium in it. General ...
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Multiple directors, including a major holder, add to stakes. John Cumming, a director at Crimson Wine Group (CWGL), picked up 8,800 shares last week. The buy increased his total holdings to 281,078 shares, and cost just over $64,000. He was joined by Joseph Steinberg, also a director and major holder, who bought 8,620 shares to bring his total to 2.67 million shares. Insider buying data for the past three years shows repeat insider buys from directors and C-suite executives, with no sales. Crimson ...
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Traders bet high oil prices will persist this month. The January 31st $40 call option on BP (BP), saw a 16-fold rise in volume, going from 186 open contracts to nearly 3,000 contracts trade hands. The bet, with shares of BP trading right around $40, will pay off should oil prices continue to trade higher and the energy company goes with it. The call buyer paid about $0.76, or $76 per contract, so BP shares would need to trade to $40.76 to profit ...
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Traders bet on 10 percent jump by late February. The February 21st 2020 $21 call options on Plains GP Holdings (PAGP), saw a whopping 148-fold surge in trading volume. From 124 open contracts, volume saw over 18,400 contracts trading hands. The bet, with shares trading just over $19, implies about a 10 percent move higher for shares in the next 46 days. The call buyer paid just $0.30, or $30 per contract. If shares stay under $21, they will expire worthless. If shares move ...
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