Trading Tips Blog

Bet on drop in natural gas operator in next month. On Monday, a staggering 33,000 contracts traded on the September 2019 $17.50 put option on Apache Corp (APA). With 31 days to expiration and with shares currently around $20.60, it’s a bet that share will drop 15 percent in the past month. With a prior open interest of 101 contracts, this contract led the day Monday for volume relative to open interest with a 325-fold surge in volume—indicating a high-conviction trade. Apache Corp ...
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Large buy on extremely low-valued put option. It’s been a tough year operationally and for shares of Tesla Motors (TSLA). One trader is even betting on a further drop in shares in the next month, possibly as a result of a broad market decline, but also possibly because of company-specific issues. On Friday, over 40,000 contracts traded on a September 2019 $50 put option, expiring just over one month away. With shares around $220, the $50 strike would trade in-the-money only if ...
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CEO and director buy heavily following bearish report. On Thursday, August 15th, Larry Culp, CEO of General Electric (GE), bought 252,000 shares, paying just under $2 million. He was joined by director Paula Reynolds. She bought 10,000 shares, paying about $85,300 to do so. GE was one of the most actively-traded companies on Thursday, as a bearish report by analyst Harry Markopoulos (in conjunction with an unnamed hedge fund) stated that as much as $38 billion in wealth at the company may ...
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Flurry of options activity following bearish report. A bearish report going into potential accounting issues released on Thursday led to many unusual options trades in General Electric (GE). One notable trade was the December 2019 $5 put options. Those options saw a 47-fold increase in volume from 159 contracts to over 7,500. At a current price near $8, the options reflect a possible 37.5 percent drop in shares between now and mid-December. Many other put options on the company also saw a surge ...
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Division president and director buy shares. On Wednesday, August 14th, two insiders bought shares at beverage giant Keurig Dr Pepper (KDP). They included Brian Loucks, the President of Keurig Appliances, who picked up over 18,550 shares, paying just over $525,000 to do so. He was joined by director Robert Singer, who bought 4,000 shares, paying just over $110,000. Corporate insiders have been buyers of the stock in the past year, although a major holder, Maple Holdings, has been a net seller. Keurig Dr ...
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December call buying indicates further rally in shares. Gold mining companies have been doing well this month, as gold prices have risen along with market fears. Traders continue to bet on the space moving higher, with a big trade on Wednesday in shares of Barrick Gold (GOLD). Over 3,100 contracts on the December 2019 $23 calls on shares traded, a 16-fold increase in the prior open interest just under 200 contracts. With a current share price just over $18, the option is ...
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Owner Carl Icahn makes $30 million buy. On Tuesday, August 13th, billionaire investor Carl Icahn bought 4,572,521 more shares of a company he already owns more than 10 percent of, Conduent (CNDT). The stake, costing just under $30 million, increased the size of his holdings by about 14 percent to over 36.2 million shares. Icahn has previously bought shares in May, when he picked up over 6 million shares in three separate purchases. One director has bought this year, and no insiders have ...
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September calls bet on a rebound in shares. It’s been a tough year for Kraft-Heinz (KHC). But at least one trader is betting that the company’s post-earnings drop will see a bounce within the coming weeks. On Tuesday, over 12,600 contracts traded on a September $27.50 call option, a nine-fold surge in volume. With 37 days to go, it’s a bet that shares will rally about $1.20 from their current price of about $26.30, or about 4.6 percent. Kraft-Heinz, the branded food giant, ...
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