Unusual Options Activity: Mercer International (MERC)
Paper materials company Mercer International (MERC) is down nearly 40 percent over the past year. One trader is betting on a sharp rebound in the coming months. That’s based on the August $12.50 calls. With 94 days until expiration, 22,725 contracts traded compared to a prior open interest of 146, for a 156-fold rise in volume on the trade. The buyer of the calls paid $0.15 to make the bullish bet. Shares recently traded for about $9, so they would need to ...
Read More About This
Read More About This
Strong Brands Can Endure More than a Weak Quarter… Or Even a Weak Year
One of the most powerful long-term investment trends is to invest in a company with a durable competitive advantage. For most companies today, that usually means offering a unique product that’s protected by a copyright or patent. Even though patents are temporary and copyrights won’t last forever, once a brand has been built, it can stand the test of time. And that can lead to higher returns versus investing in generic competitors. In the world of entertainment brands, it’s tough to argue ...
Read More About This
Read More About This
Insider Trading Report: Tyson Foods (TSN)
Wes Morris, a Group President at Tyson Foods (TSN), recently bought 10,362 shares. The buy increased his holdings by 31 percent, and came to a total cost of $499,431. He was joined by another Group President who bought 2,040 shares, paying just over $99,700 to do so. These buys are the first insider buys at the company over the past two years. Generally, company executives have been slight sellers of shares, usually following the exercise of stock options. Overall, company insiders ...
Read More About This
Read More About This
Unusual Options Activity: Google (GOOGL)
Search engine giant Google (GOOGL) popped higher last week following an announcement on the company’s investments in artificial intelligence. One trader is betting that shares will come down following the news. That’s based on the July $120 puts. With 67 days until expiration, 16,784 contracts traded compared to a prior open interest of 187, for a 90-fold jump in volume on the trade. The buyer of the puts paid $6.75 to make the bearish bet. Shares recently traded for about $117, so ...
Read More About This
Read More About This
Stick With Income Payers in Today’s Markets
2023 has been a strong year for stocks so far. Even if the market flattens out from here, it will still be a much better year than 2022. Those looking to buy today won’t get the extreme lows from last October or December for most stocks. Rather than pile into stocks that have done well, investors may do better by focusing on income stocks rather than growth stocks for the time being. Fortunately, many companies have continued to grow their dividends. One ...
Read More About This
Read More About This
Insider Trading Report: Pfizer (PFE)
Scott Gottlieb, a director at Pfizer (PFE), recently bought 2,000 shares. The buy increased his holdings by 50 percent, and came to a total cost of $77,005. This marks the first insider buy at the company over the past two years. Company executives have largely been sellers of shares, particularly at the executive vice president level. Some of those sales came from exercising stock options, although more than half did not. Overall, company executives own 0.01 percent of shares. The drugmaker was ...
Read More About This
Read More About This
Unusual Options Activity: PayPal (PYPL)
Digital payment platform PayPal (PYPL) is down about 12 percent over the past year, although shares have been trending higher in the past few months. One trader sees that trend continuing in the coming weeks. That’s based on the June 23 $75 calls. With 42 days until expiration, 4,065 contracts traded compared to a prior open interest of 116, for a 35-fold rise in volume on the trade. The buyer of the calls paid $0.36 to make the bullish bet. Shares Read More About This
Look for Companies Likely to Revert to the Mean
While the overall market has its ups and downs, individual stocks can have more extreme moves. When a company has an extreme rally higher, its shares may be more susceptible to a pullback. The reverse is true when a company has been falling relative to peers. This concept is known as reversion to the mean. And it’s a sign that investors might be able to find buying opportunities in beaten-down stocks. Or traders can find overpriced stocks to target for a ...
Read More About This
Read More About This