Trading Tips Blog

Shares of airliner American Airlines (AAL) have been rallying higher in recent weeks. One trader sees the potential for a move higher in the coming months. That’s based on the November $25 calls. With 211 days until expiration, 12,293 contracts traded against a prior open interest of 375, for a 33-fold increase in volume on the contract. The buyer of the calls paid $1.33 to get into the trade. Shares recently traded just under $20, so the stock would need to rise ...
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Many sectors of the market trend towards an oligopoly, where a small number of players will dominate the market. One such example is the media industry, where six large corporations control about 90 percent of the news today. Other sectors also have this factor at work. Smaller companies end up being bought out by larger companies, and the largest companies tend to jockey for position based on their ability to grow. For example, in the banking space right now, only 5 major ...
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Global Media & Entertainment, a major owner of iHeartMedia Inc (IHRT), recently added 3,908,826 shares. The buy increased the fund’s stake by just over 17 percent, and came to a total purchase price of  $74.1 million. Company insiders, including directors, C-suite executives, and other major holders, have generally been buyers of shares over the past three years, with only one sale by an institution in October 2021. Overall, company insiders own 2 percent of shares, with institutions owning a further 96 ...
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Shares of chipmaker Intel (INTC) have been a poor performer in the past year, but the company has had some surges higher. One trader sees another such move playing out in the weeks ahead. That’s based on the May 28th $50 calls. With 37 days until expiration, 16,101 contracts traded against an open interest of 261, for a 71-fold surge in volume on the contract. The buyer of the calls paid $0.17 to get into the trade. Overall, Intel shares have slid ...
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As the market goes, so do most individual stocks. That’s especially true for early-stage companies or new combinations with a limited market history. A bull market can mean a new company will tend to be valued highly, likely even higher than it’s worth. But a bear market can mean a new stock will likely be undervalued until it can prove its mettle (or until the market changes to bullish again). One new name on the market now is Warner Brothers Discovery (WBD) ...
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WindAcre Partnership Master Fund, a major owner of Nielsen Holdings (NLSN), has been buying up shares in recent days. Last week, the company bought over 23 million shares, increasing its holdings to 91,074,000 shares in total. That’s following an earlier buy for just over 31.5 million shares in April. All told, the fund now owns just over 25 percent of the company, and has become the largest shareholder. The buys have occurred as Nielsen has agreed to be bought out by a ...
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Shares of silica producer U.S. Silica Holdings (SLCA) have been in a strong uptrend, more than doubling since February. One trader sees a continued rally in shares. That’s based on the January 2023 $10 calls. With 276 days until expiration, 9,183 contracts traded compared to a prior open interest of 124, for a 74-fold increase in volume on the trade. The buyer of the calls paid $11.60 to get in. Shares recently traded around $20.50, indicating that the calls are about ...
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After a massive surge higher in a number of commodities as Russia invaded Ukraine, prices for many such goods have come back down a bit. But company executives remain bullish on the space, and with ongoing tensions in many parts of the world, not to mention high inflation, the commodity bull market appears here to stay. Investors who buy top commodity stocks now, even with shares near 52-week or even multi-year highs, can continue to play this trend higher. One space that ...
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