Trading Tips Blog

Shares of beverage firm Keurig Dr Pepper (KDP) have been trading in a narrow range over the past few months. One trader sees the potential for a further move higher in shares in the coming months. That’s based on two different option trades with unusual activity. The most interesting is the October $36 calls. With about 100 days until expiration, over 10,912 contracts traded, a 70-fold jump in volume from the prior open interest of 157 contracts. Shares are trading for around ...
Read More About This

It’s a simple trading strategy: Find a company that’s performing well and just posted great quarterly earnings numbers. Then, if shares drop because the company’s guidance isn’t bullish enough, buy the dip and wait for the rebound, following the fundamentals. That’s as strategy likely to pay off well in this market throughout earnings season. One such trade has already presented itself in Walgreens Boots Alliance (WBA). The drugstore chain posted great growth, but shares got knocked down last week following earnings ...
Read More About This

ARK Fintech Innovation ETF, a fund with major holdings in the cryptocurrency space, bought shares of Coinbase (COIN) in late June. Buying nearly 82,000 shares, the fund paid out nearly $20.3 million for the shares. A related entity bought $53 million in shares the week before. Since the company went public in April, insiders at the firm, including directors and major holders, have been sellers of shares. The company went public at an official price around $350, rallied to nearly $430 ...
Read More About This

Shares of media giant Discovery (DISCA) surged higher at the start of the year, then imploded as a hedge fund blew up. In recent sessions, shares have started to trend higher. One trader is betting that the rally will continue. That’s based on the August $37.50 calls. Over 33,660 contracts traded against a prior open interest of 234, for a 144-fold jump in volume. The buyer of the calls paid about $0.58 to make the trade. With shares trading just over $31, ...
Read More About This

The first half of the year saw a slowdown in tech stocks, and better relative strength in value names. While growth has started to rise in recent sessions, investors who continue to invest in both growth and value can do well in this market. Some of the best values may be in value names that have now underperformed over the past year. Any positive surprises in such a company may result in a jump higher in shares with low downside risk. One ...
Read More About This

Peter Sonsini, a major owner at Bright Health Group (BHG), has recently picked up 1,944,444 shares. The buy came to a total price of $35 million, and represents a 1.1 percent increase in the owner’s holdings. The buy represents the sole insider activity since the healthcare plan provider went public in late June. Company insiders own an estimated 4 percent of company shares based on initial filings. In addition to offering healthcare plans, the company also provides employee insurance plans, Medicare ...
Read More About This

Shares of oil and gas equipment giant Halliburton Company (HAL) have been trending higher with the price of oil over the past few months. One trader sees the potential for a big jump higher in the coming months. That’s based on the September $28 calls. Expiring in 74 days, over 46,640 contracts recently traded, a massive 259-fold jump in volume from the prior open interest of 180 contracts. The buyer of the call options paid about $0.70 to make the trade. With ...
Read More About This

A number of sectors are looking strong going into the back half of the year. In one sector, costs are going down, expenditures look likely to drop, and prices remain robust, which makes for an attractive move going forward. The sector? Oil and natural gas. A number of companies are looking good as OPEC is set to meet on production, with oil potentially capable of seeing oil hit $100 per barrel. Case in point is ConocoPhillips (COP). The energy giant just increased ...
Read More About This