Trading Tips Blog

Commerce platform
Shopify (SHOP) fell last week following earnings. As a result, shares are now trading flat over the past year. One trader is betting shares will rebound from the earnings drop in the months ahead. That’s based on the September $120 calls. With 129 days until expiration, 12,376 contracts traded compared to a prior open interest of 444, for a 28-fold rise in volume on the trade. The buyer of the calls paid $0.14 to make the bullish bet. Shopify shares recently ...
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Markets tend to get jittery during earnings season. In the long-term, earnings matter. In the short-term, other factors may be at play. That can include how a company discusses its forward outlook. Or there may be some aspect to a company’s revenues or profit margins that lead to a selloff. Fortunately, that’s an opportunity for investors. While short-term traders may beat down shares of a great company, its creates a buying opportunity for those with a bullish outlook. For instance, metaverse video ...
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Michael Pegram, a director at
Caesars Entertainment (CZR), recently bought 40,000 shares. The buy increased his take by 25%, and came to a total cost of $1.45 million. That’s the second buy from the director this year, following a 15,000 share buy in March at a cost just over $621,000. He was also a buyer twice in 2023, along with the company CEO, who bought $370,725 of shares. In the past year, there has been just one insider sale. Overall, Caesars insiders ...
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Health diagnostics company
Exact Sciences Corp (EXAS) is down nearly 25% in the past year. One trader is betting on a further decline in the coming weeks. That’s based on the June $50 puts. With 38 days until expiation, 2,758 contracts traded compared to a prior open interest of 108, for a 25-fold rise in volume on the trade. The buyer of the puts paid $1.46 to make the bearish bet. Exact shares recently traded for about $54, so the stock would need ...
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Every industry will have several players. Depending on the structure of the industry, there may be dozens of players or just a few. The ease of entering the industry and successfully competing can make a big difference. That’s why the restaurant industry has dozens of options. But the credit card networks have just four players due to the high cost of entry and building a network. Today’s tech companies often have just a handful of players. That’s because these companies can successfully ...
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David MacLennan, a director at
Caterpillar (CAT), recently bought 500 shares. The buy increased his position by 10%, and came to a total cost of $168,195. This is the director’s second buy of the year, following a 350 share pickup for just over $113,000 back in February. Otherwise, there has been one insider sale from a company Group President, following the exercise of stock options. Going further back, insiders were more likely to be sellers of Caterpillar stock. Overall, Caterpillar insiders own ...
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Drug manufacturer
Teva Pharmaceutical (TEVA) has been on a tear, with shares soaring 67% over the past year. One trader sees shares continuing higher into the autumn. That’s based on the September $18 calls. With 133 days until expiration, 7,964 contracts traded compared to a prior open interest of 171, for a 47-fold rise in volume on the trade. The buyer of the calls paid $0.71 to make the bullish bet. Teva shares recently soared to a 52-week high just under $16 ...
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For investors, a company’s prospects come down to earnings. Rising earnings will drive a stock higher over time. And when a company reports great earnings, but shares sell off, it may create a buying opportunity in the short-term. That’s especially true when a company isn’t just reporting great earnings but manages to consistently beat bullish expectations. Such a company can likely lead to far higher returns for investors when bought during a selloff. Right now, app performance monitoring company
Datadog (DDOG) fits the ...
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