Trading Tips Blog

Shares of oil and gas major Conoco Phillips (COP) have nearly doubled over the last year thanks to strong oil and gas prices. One trader sees further upside ahead for the company. That’s based on the September $120 calls. With 24 days until expiration, 12,135 contracts traded compared to a prior open interest of 218, for a 56-fold rise in volume on the trade. The buyer of the calls paid $0.61 to make the bet. Shares recently traded around $105, so they ...
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When times get tough, some types of companies have some big problems. Others tend to fare well. Those that do well succeed in part because they’re in a recession-resistant industry. One type of company fitting that bill is one that offers pick and shovel plays. While that can mean those specific tools, the broader concept is the infrastructure and tools needed to keep an economy or sector going. These stocks tend to hold up well, even in fearful markets. One such play ...
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Celso Goncalves, CFO at Cleveland-Cliffs (CLF), recently picked up 6,000 shares. The buy increased his holdings by 4 percent, and came to a total cost just under $18,500. That buy came a day after the CFO bought 5,000 shares. A company president has also been bullish this year. Over the past three years, company insiders have largely been buyers, with only a handful of sales by company directors. Overall, insiders at the company own 1.4 percent of shares. The steel producer has ...
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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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