Trading Tips Blog

Shares of drugstore chain CVS Health Corporation (CVS) hit an all-time high in May, dipped, and have finally broken through to new highs. One trader sees that breakthrough continuing in the short run. That’s based on the November 12 $100 calls. With 8 days until expiration, over 34,095 contracts traded, a staggering 181-fold jump in volume from the prior open interest of 188. The buyer of the calls paid $0.33. With shares of the company around $91, they would need to ...
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Every company navigates earnings season a bit differently, no matter what sector they’re in. However, few companies report on the weekend. One exception? Berkshire Hathaway (BRK-B). The company reports this Saturday. A likely economic rebound in many of the company’s fully-owned subsidiaries, appreciating stock portfolio, and share buybacks point to some big profits ahead. Going forward, the mix of improving earnings and reduced share could should continue to drive shares higher. Already, estimates are for a 32 percent rise in operating earnings, ...
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CD&R Investment Associates IX, a major owner of Beacon Roofing Supply (BECN), recently added 116,945 shares to their holdings. The buy increased the fund’s stake by over 0.8 percent, and came to a total purchase price of $6 million. This marks the first insider buys since August, when the company CEO and CFO bought shares, with the CFO buying nearly $100,000 in shares and the company CEO nearly $245,000. Going farther back, insiders were more likely to be sellers. Company insiders own ...
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Shares of wireless communications company BlackBerry (BB) have been trading relatively flat since a big surge higher at the start of the year and a smaller rally higher in May. One trader sees the possibility for another jump higher in shares in the coming weeks. That’s based on the November 26 $17 calls. Expiring in 23 days, over 4,465 contracts traded against a prior open interest of 101, for a 23-fold jump in volume. The buyer of the call paid $0.21 ...
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Last year, retail traders piled into shares of Hertz Global (HTZZ) as the company was still in bankruptcy. With the company largely in limbo due to the pandemic’s uncertainty regarding business and leisure travel, the notion of investors buying in seemed ridiculous. But those investors are having the last laugh. They pushed the share price higher, allowed the company to issue more shares and pay down debt, and now the world is facing a shortage of cars rather than a surplus. Last ...
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The Abdiel Qualified Master Fund, a major owner of Cricut Inc (CRCT), recently added 42,558 shares to its holdings. The buy increased the fund’s ownership by 0.23 percent, and came to a total price of just over $1.1 million. The fund has been a repeat buyer over the past few months, picking up nearly 900,000 shares since the start of September. A number of company insiders have been sellers prior to these repeat buys. Overall, company insiders own nearly 15 percent ...
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Shares of automaker Ford Motors (F) have more than doubled in the past year. One trader sees shares heading even higher in the months ahead. That’s based on the March $28 calls. With 136 days until expiration, over 12,695 contracts traded against a prior open interest of 137, for a 93-fold jump in volume. The buyer of the calls paid $0.14 to make the trade. With shares trading around $17, they’d need to surge another 64 percent for the option to move ...
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A number of companies have been warning this earnings season about potential supply chain shortages. While many retailers may see some partially bare shelves, those that have embraced a different business model are faring just fine. One such company is Overstock (OSTK). The company is an online-retailer. Its business model involves acquiring and selling inventory that other retailers have already tried to sell, although today it also carries new items. While many were expecting retail to struggle, the company’s most recent financials ...
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