Trading Tips Blog

With inflation running at annualized rates near 5 percent right now, the notion of locking up money in a 10-year government bond that pays just 1.5 percent seems ridiculous. But rather than go all the way up the risk scale, investors looking for income can find better starting  yields and even find opportunities to grow that income over time. But instead of the bond markets, those with a multi-year time horizon will likely do best with dividend growth stocks. With many companies ...
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Shares of consumer apparel giant L Brands (LB) have been in a strong uptrend over the past six months. One trader sees the possibility of a further move higher in the coming days. That’s based on the July 9 $77 calls. Expiring in 10 days, over 3,820 contracts traded against an open interest of 125, for a 31-fold rise in volume. The buyer of the calls paid about $0.72 on average. Shares of L Brands last traded near $72, so shares would ...
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Chatham Asset Management, a major holder at R.R. Donnelley & Sons (RRD), recently added to its stake with a 90,000 share buy. The total cost came to just over $574,000, and increased the fund’s total holdings in the company by 0.8 percent. This buy adds on to a buy earlier in June, as well as a 1.4 million share buy back in May. Overall, the fund has been the biggest mover of shares in the past three years. While one large ...
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The stock market has always been rife with rumors. From big players talking up positions or trying to talk down a shorted stock, it’s part of the great game. This week, merger speculation occurred that Comcast (CMCSA) was looking to merge or buy out a number of smaller players. While Wall Street analysts are trying to downplay these rumors, the possibility has been floated that the cable giant turned media powerhouse is looking to buy up either Roku (ROKU) or ViacomCBS ...
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Marc Lemann, a director at Restaurant Brands International (QSR), recently bought 15,000 shares. This buy came to a total purchase price of just over $1 million, and represents the director’s initial stake in the company. This represents a rare buy at the company, as the most recent prior buy occurred in early 2019. Overall, company insiders have been regular and large sellers of company shares, including both C-suite executives and company managers. Overall, company insiders own about 1.5 percent of company ...
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Shares of mill and paper firm Weyerhaeuser (WY) have slid heavily in the past few weeks, coinciding with a massive drop in lumber prices after a massive expansion in the past year. One trader sees the potential for a return to the stock’s recent highs. That’s based on the March 2022 $40 calls. Expiring in 263 days, over 6,085 contracts traded against a prior open interest of 153 contracts, for a 40-fold rise in volume. The buyer of the option paid about ...
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The pandemic saw a rapid drop in companies paying out dividends or buying back shares. That trend has now reversed. Even though most stocks are above pre-pandemic levels and have been for some time, buybacks are still moving higher. One such company that’s gotten into the buyback game in recent quarters is Berkshire Hathaway (BRK-B). The conglomerate operated by Warren Buffett has been making small purchases of its shares, with an estimated $6.4 billion buyback in the current quarter. Buffett follows ...
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Shares of fintech firm SoFi Technologies (SOFI) have been trading in a narrow range since the company’s IPO via a special purpose acquisition company, or SPAC. One trader sees the potential for a move higher in the coming weeks and months. That’s based on a number of unusual options in the stock. The most interesting is the January $7.50 calls. With 210 days until expiration, over 8,300 contracts traded against an open interest of 228, for a 36-fold jump in volume. The ...
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