Trading Tips Blog

Shares of Pinterest (PINS) surged to an all-time high, on reports that the company had been approached by Microsoft (MSFT) about a potential acquisition. Microsoft tried to buy TikTok last year, and the tech giant acquired business networking site LinkedIn for $26 billion in 2016. Buying Pinterest, where users pin items they like on personalized boards, would be a far more consumer-facing social media experience. With a market cap of $55 billion, Pinterest would be at least double the valuation of ...
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Uranium prices have been on the rise, and traders have been piling into related mining names. One such name, Denison Mines (DNN) has nearly doubled since the start of the month. One trader sees a massive surge higher. That’s based on the March $5 calls. With 35 days until expiration, and with shares around $1.15, shares would need to go up nearly five-fold for the trade to profit. Over 175,700 contracts traded, a 25-fold rise in volume from the prior open interest ...
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Sang Young Lee, a director and major holder at PCB Bancorp (PCB), recently picked up 3,700 shares. The buy increased his stake by 0.3 percent, and came to a total cost of just over $50,000. Insiders, including both directors and C-suite executives, have been large buyers in the past year as shares have sold off. The last insider sale occurred in late 2019, and at prices far higher than where shares trade today. Overall, insiders own over 21 percent of shares. Like ...
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Cosmetics firm Coty (COTY) has been a poor performer during the pandemic, but shares have started moving up in recent months. Now, after flatlining for a few weeks, one trader sees shares moving higher. That’s based on the March 2021 $7.50 call. With 43 days until expiration, over 10,200 contracts traded against an open interest of 247, for a 41-fold rise in volume. The trader paid about $0.53 for each contract. With shares at $6.60, the $7.50 trade will move in-the-money if ...
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Ted Dosch, a director at UGI Corp (UGI), recently picked up 10,000 shares. The buy increased his holdings by over 41 percent, and came to a total cost of just over $374,000. This marks the first insider buy of the year. Insiders have been both buyers and sellers in the past year, with massive insider buying back in August overwhelming insider sales. Overall, insiders own about 0.6 percent of shares. The utility has been a relative underperformer compared to the overall ...
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Some company CEOs have discussed getting rid of quarterly earnings reports. As long as it’s required by the SEC, it will never happen. But those CEOs are right to point out that quarterly numbers, along with the Wall Street earnings guessing game, often creates a short-term focus that distracts from the long-term. That’s also why some of the best trades to make are companies that sell off after an earnings report, whether good or bad. Especially when a company has great long-term ...
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When times get tough, investors turn to defensive stocks. Typically areas such as utilities or telecoms, these companies tend to offer slower prospective growth, but offer some strong income opportunities as well. Some other sectors such as consumer goods also fall into the defense space. But, under the right circumstances, companies in this space can see solid growth during an expanding economy as well. One brand in a defensive area that still looks set to grow? Alcohol and spirits. Goldman Sachs ...
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Social media giant Twitter (TWTR) saw a backlash last month over a number of banned accounts, including that of then-president Donald Trump. However, shares have started to move higher in the past few weeks, and one trader sees a continued rally ahead. That’s based on the March $85 call option. Expiring in 37 days, and with shares trading at $60, it’s an aggressive bet on shares continuing their current strong rally. Over 8,050 contracts traded against a prior open interest of 202, ...
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