Trading Tips Blog

Pharmaceutical giant Pfizer (PFE) is down 23% over the past year. One trader sees further weakness ahead for shares in the coming weeks. That’s based on the August 2 $26 puts. With 28 days until expiration, 15,300 contracts traded compared to a prior open interest of 630, for a 24-fold rise in volume on the trade. The buyer of the puts paid $0.26. Pfizer recently traded for about $28, so shares would need to drop nearly $2, or nearly 7%, for the ...
Read More About This

Different market sectors move at different times. But when a sector does take off, it will often need to pause for a while before moving higher. This consolidation trend is normal, and in some sectors can last for years, in others, for weeks. The cryptocurrency market has been consolidating for a few months now following bitcoin’s halving in April. That may have shaken out momentum traders hoping for a quick ride to new all-time highs. Today, it’s creating an opportunity across the ...
Read More About This

Gary Friedman, CEO and major holder of RH (RH), recently bought 46,274 shares. The buy increased his stake by 1%, and came to a total cost just under $10 million. This is the first insider buy at RH in over two years. Otherwise, company executives have largely been sellers of shares following the exercise of stock options. And company directors have been sellers of shares periodically over the past two years. Overall, RH insiders own 18.6% of shares. The specialty retailer is ...
Read More About This

Modular nuclear reactor developer NuScale Power Corporation (SMR) is up 58% over the past year, and up over 5 times from its lows. One trader sees shares pulling back in the coming weeks. That’s based on the August 16 $10 puts. With 43 days until expiration, 4,063 contracts traded compared to a prior open interest of 119, for a 34-fold rise in volume on the trade. The buyer of the puts paid $1.25 to make the bearish bet. Shares recently traded just ...
Read More About This

While the markets test new all-time highs and pull back, several companies have seen bigger jumps over the past few months. That includes a resurgence in meme stocks, some of which have seen triple-digit gains at times. Some stocks have also jumped on meme-like news. With markets still in a bullish mood, it’s best to separate the strong performers from the hopefuls at current prices. This week, trader Keith Gill of GameStop (GME) fame, disclosed a 6.6% stake in pet supply ...
Read More About This

Amy Murray, a director at American Financial Group (AFG), recently bought 1,200 shares. The buy came to a total cost of $150,205, and increased her position by 55%. This marks the first insider buy over the past two years. Otherwise, company insiders, including both executives and directors, have been sellers of shares on a regular basis. Most of those sales have occurred in a price range between $115 and $145, near where shares trade today. Overall, AFG insiders own 18.0% of ...
Read More About This

Casino operator Caesars Entertainment (CZR) is down over 20% in the past year, with shares down 5% on Monday alone. One trader sees the stock rebounding in the coming weeks. That’s based on the August 16 $35 calls. With 44 days until expiration, 8,183 contracts traded compared to a prior open interest of 141, for a 58-fold rise in volume on the trade. The buyer of the calls paid $4.00 to make the bullish bet. Caesars shares recently traded for about $37.75, ...
Read More About This

With the first half of the year on the books, tech has cemented its place as the runaway winner. But tech returns have started to slow. And with investors looking more defensively and with the potential for interest rate cuts ahead, other sectors may soon lead. That could mean that underperforming sectors in the first half of the year can have their turn to outperform. And investors who position themselves could stand to benefit. One underperforming sector is real estate. With interest ...
Read More About This