Trading Tips Blog

Shares of commodity producer Freeport-McMoRan (FCX) have been sliding in recent weeks, on signs of cooling inflation. One trader sees the possibility for a further decline in the coming weeks. That’s based on the September 9th $27 put options. With 18 days until expiration, 2,905 contracts traded compared to a prior open interest of 127, for a 23-fold rise in volume on the trade. The buyer of the puts paid $0.24 to make the bet. Shares recently traded just over $31, so ...
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Consumers are starting to show signs of pulling back on spending in a number of areas. For a recession, that tends to mean a large slowdown in a number of high-cost activities, such as cruises or other vacations. That also means that low-cost forms of entertainment tend to hold up well. As with low-cost food or beverages, demand remains much stickier, no matter how the economy declines. Investors who follow this trend can find profitable opportunities now. One potential low-cost opportunity is ...
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Maurice Milikin, Chief Supply Chain Officer at Keurig Dr Pepper (KDP), recently picked up 12,979 shares. The buy increased his holdings by about 17 percent, and came to a total cost of just over $517,000. The buy is a follow-up, as the officer has been a steady buyer since June. Other company executives have also been buyers in recent months, with one company director making a sale. Over the past three years, insider buying has far exceeded sales. Overall, officers and directors ...
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Shares of financial giant Bank of America (BAC) are down 10 percent over the past year. One trader sees the potential for the stock to continue its recent rally into 2023. That’s based on the February $43 calls. With 182 days until expiration, 3,632 contracts traded compared to a prior open interest of 138, for a 26-fold rise in volume on the trade. The buyer of the calls paid $0.83 to make the bullish bet. Shares recently traded around $36.50, so ...
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There’s nothing shocking in admitting that consumer spending drives the economy. And with uncertain and inflation high, it’s also no surprise that consumers are trending with lower-cost goods and services, foregoing higher-end ones. That’s been somewhat apparent this earnings season, as high-end retailers have struggled more than big-box stores that cater to a cost-conscious clientele. With these companies now reporting earnings, there’s a sigh of relief as things haven’t been as bad as feared. The poster child for those fears has been ...
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Rehan Jaffer, a major holder at Six Flags Entertainment (SIX), recently added 525,000 shares. The buy increased his holdings by 5.5 percent, and came to a total price of $12.5 million. He was joined by company director Arik Ruchim, who also bought 525,000 shares for about the same amount on the same day. The two major holders were last big buyers of shares back in May. The company CFO has also been a modest buyer in the past few months. Overall, Read More About This

Shares of ecommerce vehicle sales platform Carvana (CVNA) have lost 85 percent of their value in the past year. One trader is betting that the company will continue to slide lower. That’s based on the October $40 puts. With 64 days until expiration, 20,786 contracts traded compared to a prior open interest of 458, for a 45-fold surge in volume on the option. The buyer of the puts paid $4.05 to make the bet. Shares recently traded for around $55 per share, ...
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Some industries tend to stay the same over time. That can bode well for investors, provided that industry has already consolidated into a few big players. That can be seen with companies like consumer goods. For industries that continue to face new innovations, however, leadership can change in time. Investors who look beyond the current leaders and look to those becoming new leaders stand to make an outsized return as that trend plays out. One industry seeing a shift in leadership is ...
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