Trading Tips Blog

Shares of coffee store chain Starbucks (SUBX) are up 15 percent over the past year, bucking the market downtrend. However, one trader sees a pullback in the coming weeks. That’s based on the March $102 puts. With 18 days until expiration, 4,092 contracts traded compared to a prior open interest of 164, for a 25-fold rise in volume. The buyer of the puts paid $1.67. Shares recently traded around $103.50, so the stock would need to drop about $1.50 for the option ...
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The information age has rewarded those who can package data in digestible ways. That’s rewarded companies like social media firms, which have allowed for users to share content with those in their networks. And it’s allowed bigger tech companies to consolidate data that can make analytical predictions about consumer tastes and behavior. In short, content is king – and only a few companies are able to consistently profit from it. In China, Baidu (BIDU) has a similar role to the one that ...
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Daniel Schulman, President and CEO at PayPal Holdings (PYPL), recently bought 26,065 shares. The buy increased his holdings by 7 percent, and came to a total cost of $1.99 million. This marks the first insider buy since last May, when the company’s Chief Product Officer bought 7,370 shares, at a cost of $597,000. There have been three small sales since. Going back further, insider buying and selling has been more mixed, even when shares traded far higher than today. Overall, company insiders ...
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Shares of pharmaceutical drug manufacturer Eli Lilly and Company (LLY) are up 37 percent in the past year. However, the share price has started to sag – and one trader sees the potential for a further decline in the months ahead. That’s based on the May 2023 $310 puts. With 84 days until expiration, 4,464 contracts traded compared to a prior open interest of 159, for a 28-fold rise in volume on the trade. The buyer of the puts paid $10.25. Eli ...
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While the market has had a strong start to the year, stocks are turning down again. That’s not a problem for investors who focus on value. That includes companies with strong brands, as well as on companies that can offer steady and growing dividend payouts. These companies may not always be big winners, but they tend to hold their own in down markets. And that can lead to winning performance over time. That’s particularly true for companies that can pass on higher ...
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R.A. Walker, a director at ConocoPhillips (COP), recently added 6,000 shares. The buy increased the director’s holdings by 27 percent, and came to a total cost of $627,000. The same director was the last buyer of shares back in August 2021, with an initial stake of 22,500 shares, which cost just over $1.24 million. Otherwise, company directors and executives alike have largely been steady sellers of the stock, mostly on the exercise of stock options. Overall, insiders own a scant 0.14 ...
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Shares of Home Depot (HD) slid nearly 7 percent on Tuesday following the company’s latest earnings report and outlook. One trader sees shares trending lower in the coming months. That’s based on the April $270 puts. With 57 days until expiration, 5,766 contracts traded compared to a prior open interest of 131, for a 44-fold rise in volume on the trade. The buyer of the puts paid $4.58 to make the bearish bet. Shares slid to about $296 following the earnings report, ...
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Companies exist to provide a product or service. The best and most profitable companies do so in a way that solves a problem – real or perceived – for consumers. Creating new and simplified ways of doing business, for instance, can create a great investment opportunity. That’s because improving a process means that a company can profit from every transaction, even if it’s to such a small degree. This is the way that credit card companies have become a fantastic investment ...
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