Trading Tips Blog

First insider buy at the grocery chain in two years. With so much conflicting economic data, investors may be looking for defensive investments. Corporate insider buying in the space is rare, which makes the recent insider buy at grocery chain The Kroger Co. (KR) so interesting. On July 2nd, director Ronald Sargent bought 5,000 shares, shelling out about $108,000 to add to his stake in the company. All told, he now owns just under 95,000 shares. This is the first insider buy ...
Read More About This

Big bet on natural gas producer during summer slump. Shares of Chesapeake Energy (CHK) could move up to 34 percent higher between now and November. That’s based on a surge in volume on the November $2.50 calls, and a current price around $1.86. On Tuesday, over 160,000 of these options traded, a 58-fold surge in volume. That’s a relatively quick amount of time for such a move, but it’s not unheard of in the commodity space. Plus, by November, a colder-than-expected winter could move ...
Read More About This

Insiders have never sold shares in the past three years. While names related to transportation and trade haven’t looked attractive in the midst of slowing global trade and tariff fears, insiders see an opportunity in Pitney Bowes (PBI). On June 30th, Executive Vice President Jason Dies bought 1,500 shares, increasing his stake in the company by 25 percent. Insiders have been net buyers, with no insider sales at the company, for nearly three years. Pitney Bowes provides mail and shipping fulfillment products and ...
Read More About This

Traders betting on rally after Fed approves capital plans. Shares of Bank of America (BAC) could move up to 23 percent higher between now and February. That’s based on a surge in volume on the February 21st 2020 $36 calls. Over 1,400 contracts traded on Monday, about a 12-fold increase in the existing open interest on the bank. Shares are currently around $29.50, so this out-of-the-money trade needs the big percentage move to lock in a profit by the expiration in February. Last week, ...
Read More About This

Major fund holder adds 4.6 million shares. CD&R Investment Associates, already a 10 percent owner, has been adding to its stake in Beacon Roofing Supply (BECN). Typically, when large investment funds increase their stake, it’s because they see the same value as other insiders. However, funds can also acquire board seats and otherwise push a company to make changes it might not otherwise—to the benefit of shareholders. On June 28th, the fund bought 4.6 million shares, a $158 million commitment. That increased its ...
Read More About This

Company CEO makes third buy in the past five weeks. Insiders continue to be buyers in the energy sector, even after oil prices have started moving higher. The latest example? Natural gas pipeline company Altus Midstream Company (ALTM). On Thursday, CEO Clay Bretches picked up 15,000 shares of the company, paying nearly $55,000. It also increased his total stake by over 37 percent, a huge additional buy in. This follows up on buys of 20,000 shares on June 14th, and 20,000 shares back ...
Read More About This

Big trade bets shares will rally in July. Shares of AbbVie (ABBV) dropped nearly 15 percent on news that it was planning to acquire Botox maker Allergan. One trader is betting that the move was overdone. On Friday, over 3,200 contracts traded on the August 2, 2019 $80 call option. With 35 days left to expire and AbbVie prices just under $72, the option is a bet on an 11 percent rally in shares in the month of July. That kind of percentage ...
Read More About This

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 ...
Read More About This