Trading Tips Blog

Shares of media giant The Walt Disney Company (DIS) have slid in recent months along with the overall market. One trader sees a further decline in shares in the coming weeks. That’s based on the July 22 $100 puts. With 24 days until expiration, 5,040 contracts traded compared to a prior open interest of 129, for a 39-fold rise in volume on the trade. The buyer of the puts paid $4.80 to get into the trade. Shares recently traded for about $98, ...
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The sharp rise in mortgage rates in the past year has caused the cost of financing a home to nearly double. Most investors are expecting a slowdown in home sales, as well as a price drop, as long as mortgage rates stay so high. However, while sales may slow down, homeowners will still need to maintain their homes and continue to repair their properties. That bodes well for beaten-down home improvement retailers. These companies are near 52-week lows, yet continues to show ...
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Berkshire Hathaway (BRK-B), a major holder of Occidental Petroleum (OXY), has added another 9,551,454 shares. The buy increased the company’s holdings of shares by 6.7 percent, and came to a total purchase price of just under $529 million. Berkshire has been a regular buyer of shares at the company throughout the year. So as the company President and CEO this year. Insiders have been far more likely to be buyers rather than sellers. Overall, company insiders own about 0.2 percent of ...
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Shares of cryptocurrency mining company Marathon Digital Holdings (MARA) are down 77 percent in the past year, thanks largely to a decline in the price of Bitcoin. One trader is betting on a further decline through next year. That’s based on the January 2024 $2.50 puts. With 571 days until expiration, 11,496 contracts traded hands compared to a prior open interest of 288, for a 40-fold rise in volume on the trade. The buyer of the puts paid $1.11 to make ...
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With the stock market in the throes of a bear pullback, many are looking to history as a guide for when the bear will end. While the answer varies, chances are stocks will remain weak for a few more weeks and even months as economic data continues to come in. That said, investors who start accumulating shares of great companies, particularly industry-leading companies, will end up with a strong portfolio performance on the market’s next rally higher. Among the big tech players, ...
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Bruce Evans, a director at Analog Devices (ADI), recently picked up 3,650 shares. The buy increased his stake by 3.6 percent, and came to a total price just over $526,000. This marks the first insider buy at the company since last October. Company insiders, including c-suite executives and directors, have been regular sellers of shares of the semiconductor firm over the past three years, with only a few buys from insiders. Overall, insiders at the company own 0.4 percent of shares. Shares ...
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Shares of oil and gas giant BP (BP) have slid in recent days. One trader sees the possibility for a rebound into the start of next year. That’s based on the January 2023 $31 calls. With 210 days until expiration, 6,511 contracts traded compared to an open interest of 125, for a 52-fold rise in volume on the trade. The buyer of the calls paid $2.10 to get into the trade. The stock recently traded around $28, so shares would need to ...
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There are two main ways companies can reward shareholders. One way is to pay a growing dividend from rising cash flows over time. Another way is to buy back shares when the company’s valuation is compellingly low. Some companies can do both, provided they don’t overpay to buy back shares. With many stocks down right now, a few companies are setting up for better returns when the market sentiment turns bullish again with increased buybacks. One company making a big buyback and ...
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