Trading Tips Blog

Huge bet on monster rally in shares. The June 2020 $57.50 call options on Morgan Stanley (MS) saw a 145-fold explosion in trading volume, from 203 open contracts to over 29,550. With 246 days until expiration, and with shares around $43, shares would need to rally nearly 34 percent for these options to move in-the-money by expiration. At a price of just $0.23, or $23 per contract, it’s an inexpensive bet on the financial giant moving higher, even if shares don’t rally ...
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Chief Investment Officer buys $4.6 million in shares so far this month. Andrew Feldstein, Chief Investment Officer at Assured Guarantee Limited (AGO), has been buying shares this month in four separate transactions. Each has been for at least 23,000 shares, and in total he has bought 105,700 shares so far this month. The total cost for each transaction has exceeded $1 million, and he has spent over $4.6 million total so far. Other insiders have largely been sellers this year, but ...
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Major fund holder continues to add to stake. iStar Inc. continues to add to its stake in Safehold (SAFE). The fund recently picked up 22,361 shares, shelling out $771,000 and increasing its total stake to 27.2 million shares. That’s the fund’s fourth buy month-to-date, which includes a total of more than 52,000 shares then as well. All told, the fund has been a steep buyer at prices as much as 21 percent higher in the past few months. Safehold specializes in ground ...
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June 2020 put buying indicates potential drop expected. The June 2020 $32.50 put options on Altria Group (MO) saw over 4,000 contracts trade against a prior open interest of 400, making for a 10-fold surge in volume. With shares of the company at $43, shares will need to drop 25 percent in the next 247 days for this option to move in-the-money. With a cost of $1.04, or $104 per contract, the put buyer would need shares to drop to $31.50 before ...
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Call buying suggests rally continuing this month. The October 25th $270 call options on Apple (AAPL) saw over 7,200 contracts trade against a prior open interest of 137, a 53-fold surge in volume against the prior open interest. With shares at $236, it’s a bet on shares moving 14 percent higher to move in-the-money before the end of the month, which is unlikely, especially as the company won’t report earnings until October 30th. At a price of just $0.04, or $4 per contract, ...
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Major holder adds with a $5.1 million buy. Abrams Capital, a major stakeholder in Camping World Holdings (CWH), increased their stake by 12 percent recently, with the additional buy of 650,182 shares. The total cost for that additional stake came to just over $5.1 million, and increases the fund’s total holdings to just over 6.1 million shares. Insider data shows that there have been no insider sales since early 2018, and insiders have been buyers at prices as high as 27 ...
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Casino operator picks up a bull. The March 2020 $110 call options on Wynn Resorts (WYNN) saw over 2,050 contracts trade against a prior open interest of 231, about a 10-fold surge in volume. The bet, which expires in 158 days, is about $1.30 in the money, given the recent share price of $111.30. It should therefore move dollar-for-dollar with shares higher, and could double if shares get to $125.00. If shares get back to their old high of $150, the option ...
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There are a lot of ways to make money in the market. But even if you find that rare company that can move ten-fold and provide one of the best profits of your lifetime, that will take time.Most investors get impatient. Trading Tips’ Andrew Packer explains why you should be looking at blue-chip bargains ...
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