Trading Tips Blog

Shares of search engine giant Alphabet (GOOG) have shed 44 percent of their price in the past year. One trader sees a further decline ahead for shares in the next month. That’s based on the December 9 $80 puts. With 31 days until expiration, 12,579 shares traded compared to a prior open interest of 183, for a 68-fold jump in volume on the trade. The buyer of the puts paid $1.42 to make the bearish bet. Shares recently traded just over ...
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In finance, there’s a concept called elasticity. It shows that some goods won’t see a big drop in demand, even if there’s a big change in price. This can be seen with energy prices, as people have to heat their home and drive to and from work. It’s also plain to see in the food space, as people have to eat. Companies that cater to these demands tend to be steadily profitable, or even improve amid inflation. One such example is Kellogg ...
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Richard Hipple, a director at Barnes Group (B), recently bought 1,200 shares. The buy increased his holdings by nearly 9 percent, and came to a total cost just under $43,000. That’s the first insider buy at the company in over two months. Another director has been buying this year, and some company insiders have been sellers. Over the past year, buys have exceeded sales. However, large insider sales in 2020 tip the scale over the past three years to sellers. Overall, company ...
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Shares of oil and gas exploration company Devon Energy Corporation (DVN) are up about 60 percent in the past year. One trader sees a further rally in shares in the coming weeks. That’s based on the November 25 $76 calls. With 18 days until expiration, 14,059 contracts traded compared to a prior open interest of 243, for a 45-fold rise in volume on the trade. The buyer of the calls paid $1.23 to make the bullish bet. Shares recently traded near $71, ...
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Earnings season can be a tricky time. A company can report great earnings. But if they warn on guidance, shares may sell off big time. Or, if a company has poor earnings, shares may move higher as things weren’t as bad as the market expected. In today’s market, most news is likely to lead to a discount in shares, whether good or bad. But that may be creating a solid long-term setup for investors. One company looking interesting now is Paramount Global ...
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Anne Crawford, a director at Farmers National Bank (FMNB), recently picked up 1,500 shares. The buy increased her holdings by 1.7 percent, and came to a total cost of just under $21,000. This is the first insider buy since August. Company directors have been active buyers all year, mostly for trades in the $20-25,000 range. Company executives were also buyers earlier in the year. There have only been a handful of insider sales over the past three years. Overall, company insiders ...
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Shares of semiconductor company Advanced Micro Devices (AMD) have lost more than half their value in the past year. One trader sees a rebound in the months ahead. That’s based on the March 2023 $55 calls. With 133 days until expiration, 20,093 contracts traded compared to a prior open interest of 541, for a 37-fold rise in volume on the trade. The buyer of the calls paid $10.63 to make the trade. The stock last traded just over $68.50, meaning the options ...
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Price and value aren’t the same thing. A low-priced stock could be wildly overvalued relative to the business’ prospects. And a high-priced stock could still be pennies on the dollar for a great company ahead of a growth kick. In today’s market, the fast drop in price, combined with fear and uncertainty, are creating a number of values for long term investors today… even in once high-flying sectors like tech. One such example is Qualcomm (QCOM). The wireless communications chip manufacturer dominates ...
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