Trading Tips Blog

Shares of coffee shop chain Starbucks (SBUX) are trading near a 52-week low. One trader sees the possibility for a further significant drop ahead in the coming months. That’s based on the December $50 puts. With 183 days until expiration, 3,948 contracts traded compared to a prior open interest of 103, for a 38-fold rise in volume on the contract. The buyer of the puts paid $1.54 to make a further downside bet on shares. Shares last traded around $72, so they ...
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While the economy is slowing, many trends in place will continue, even at a slower pace. Companies that can cater to the needs of growing industries can still grow and eventually even buck a market downtrend. Companies that help grow out some of today’s top tech trends, like electric vehicles or the 5G network, will be most successful if they’re already the industry leaders today. As long as that advantage can be maintained, they’ll likely continue to keep their market share. One ...
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Paul Hennessy, a director at Shutterstock (SSTK), recently picked up 10,000 shares. The buy increased his stake by 47 percent, and came to a total price of just over $564,000. This marks the first insider buy at the company in the past three years. Over that timeframe, most insider sales have come from the company’s Executive Chairman, who is also a major holder. Even with the massive sales, company insiders still own 33.3 percent of the company. Shares are down about 40 ...
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Shares of data center REIT Digital Realty Trust (DLR) are down 20 percent over the past year. One trader sees the possibility for a further decline in the months ahead. That’s based on the October $105 puts. With 128 days until expiration, 8,515 contracts traded compared to a prior open interest of 123, for a 69-fold rise in volume on the trade. The buyer of the puts paid $3.55 to get into the trade. Shares recently traded around $127, so they’d need ...
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The stock market set a new low last week, and again on Monday. That may be a re-test of the prior low before moving higher, or it may more pain ahead for investors. Those looking for when to buy during a market drop have many different ways to do so. For some types of companies, knowing which key metrics indicate a solid value now could lead to some astute buys now. For instance, in financial stocks, book value tends to be a ...
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David Sable, a director at American Eagle Outfitters (AEO), recently picked up 1,500 shares. The buy increased his stake by 6 percent, and came to a total price of just under $19,000. This marks the second insider buy this year, also from a director. And a third director picked up shares late last year. Otherwise, company executives have been large and consistent sellers of shares over the past three years. Overall, company insiders own about 6.3 percent of shares. Shares of the ...
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Shares of oil and natural gas exploration company Devon Energy (DVN) have been in a steady uptrend over the past year. One trader sees the strong prospect for a further rally. That’s based on the January 2023 $35 calls. With 220 days until expiration, 72,384 contracts traded compared to a prior open interest of 248, for a staggering 292-fold rise in volume on the trade. The buyer of the calls paid $39.70 to make the bet. Shares last traded for around ...
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Whether the economy is doing well or poorly, people want to be entertained. In a struggling market, most can find the money for inexpensive forms of entertainment such as movies, books, or video games. Of the three, video games have had the strongest growth, and the best revenue. And the space has seen some merger activity in recent months reflecting the notion that the space is still undervalued when looking at the long haul. One top publisher is Take-Two Interactive (TTWO). Shares ...
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