Trading Tips Blog

Shares of cybersecurity company FireEye (FEYE) had a slight selloff following their earnings last week. One trader is betting on a rebound in the coming weeks. That’s based on the May 21st $19 calls. Expiring in 18 days, over 8,396 contracts traded hands compared to the prior open interest of 195, for a 43-fold rise in volume. The buyer of the calls paid about $1.54 on average. With shares around $20, the $19 calls are already $1.00 in-the-money. They should move higher ...
Read More About This

Michael Sullivan, a director at Heartland Express (HTLD), recently added 1,000 shares to his holdings. The buy increased his stake by over 8 percent, and came to a total purchase price of just over $18,000. Insiders have been mixed over the past year, with a number of large sales by the trustee of a major holder giving sellers the edge. However, company directors have largely been buyers in the past year. Overall, company insiders own nearly 50 percent of the ...
Read More About This

With most of the tech space focused on the semiconductor shortage, a few areas are performing well in spite of the industry effects. One area? Memory. From solid state drives to flash drives, demand for storing more and larger amounts of data has remained constant. That’s great for companies that produce these products. And based on the latest earnings numbers, it’s clear that these companies are in an uptrend. For instance, Western Digital (WDC) just reported better-than-expected financial results. While revenue ...
Read More About This

Allied Physicians of California, a major holder in Apollo Medical Holdings (AMEH), recently added 100,000 shares. The buy increased the organization’s position by just under 1 percent, and came to a total cost of $2.45 million. The group has been both a buyer and seller of shares in the past year. Other company insiders, largely C-level executives have mostly been buyers in the past year, with a smattering of sales. Overall, company insiders own about 19 percent of company shares. The ...
Read More About This

Credit card processing company Visa (V) hit an all-time high following a strong earnings report. One trader sees the trend continuing in the next few months. That’s based on the August $240 calls. With 112 days until expiration, over 15,890 contracts traded against a prior open interest of 593, for a 27-fold surge in volume. With shares near $234, the options will move in-the-money on another 2.5 percent move higher in shares. The trader of the option paid about $8.85 to make ...
Read More About This

For most companies, share buybacks sound attractive. They can offset shares issued to executives. And as long as the market is rising, things look good. Most companies aren’t Apple (AAPL). The consumer tech giant just beat earnings and raised its share buyback program to a staggering $90 billion. That’s on top of a dividend payout as well, increasing the amount of cash the company returns to shareholders every year. The $90 bullion share buyback is pretty close to the $89.6 billion ...
Read More About This

Computing giant HP Inc (HPQ) has seen its shares move steadily higher over the past few months, with only minimal pullbacks along the way. One trader is betting the trend will continue. That’s based on the September $38 calls. Expiring in 141 days, over 3,140 contracts traded against an open interest of 141, for a 22-fold rise in volume. The buyer paid about $1.30 to get into the trade. With a current share price near $34.50, shares would need to rally ...
Read More About This

Earnings season makes for some rich trades. While many traders expected shares of Microsoft (MSFT) to rally to a $2 trillion valuation after earnings, the company instead surprised with a drop instead. The company saw revenue up 19 percent compared to a year ago, its highest level. And the company beat analyst expectations. But revenues from the company’s Azure division, where it does its cloud services, seemed a little light to shareholders. The end result is that, in spite of great ...
Read More About This