Trading Tips Blog

Shares of big-box retailer Target Corporation (TGT) have rallied in the prior weeks. Yesterday, the company reported a strong holiday season with double-digit same-store sales. One trader sees shares moving even higher. That’s based on the July 2021 $230 call options. With shares around $197, it would mean a further 17 percent rally in shares in the next 183 days. Over 2,100 contracts traded against a prior open interest of 147, for a 20-fold rise in volume. The option buyer paid about ...
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One common investment theme is a reversion to the mean. That’s a fancy way of saying that stocks that have outperformed the market will often come back down. And stocks that have underperformed the market will have their time to shine. With a big rally in tech now spreading to energy and the banks, a number of stocks have still avoided making new all-time highs. One area in particular looks interesting thanks to its low expectations: The defense sector. It’s a space ...
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Shares of vehicle manufacturer General Motors (GM) surged higher on Tuesday following the announcement of electric delivery vehicles. At least one trader sees shares moving higher. That’s based on the January 29th $55 calls. With 16 days until expiration and with shares at $48, the trader is betting on shares moving 10 percent higher this month on the news. Over 13,150 contracts traded against a prior open interest of 205, for a 64-fold increase in volume on the trade. The trader paid ...
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Bank stocks and financials in general slumped more than the average stock during the market selloff. A decline in economic activity means fewer new loans being made, and old loans face a rising risk of default of some sort. However, with the economy opening again and with interest rates low, investors see further profits in the banking sector. With the space starting to announce earnings next week, further bullish bets are being made. One such company is Bank of America (BAC). The ...
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Richard Lenny, a director at Conagra Brands (CAG), recently picked up 10,000 shares. The buy increased his stake by just over 10 percent, and came to a total cost of $337,000. This marks the first insider buy at the company in a year. Insiders have generally been sellers of shares, mostly at the C-suite level. The company’s general counsel has been the most active seller of shares here. Over the past year, shares have traded flat at the food processing giant, ...
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Shares of exercise equipment company Peloton Interactive (PTON) have been a top performer in the past year. At least one trader sees that trend continuing in the first half of 2021 as well. That’s based on the June $165 calls. Expiring in 157 days, over 4,880 contracts traded against an open interest of 181, a 27-fold rise in volume. The trader paid about $24.65 for the calls, which are about 5 percent out-of-the-money. Shares of the company are up nearly ten-fold ...
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Pershing Square Capital Management, a major holder and director at The Howard Hughes Group (HHC) recently made an addition to its stake with a 2,516,846 share buy. The total price tag came to just under $200 million, and increased the fund’s holdings by nearly 23 percent. This follows up on the fund’s initial 10 million share buy back in March. Shares are up 62 percent since then. Company insiders, including both directors and C-suite executives, have mostly been buyers, with a ...
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Environmental, social, and governance issues, or ESG, has become a popular trend in investing. A great company can balance those needs while still providing sustainable long-term growth that rewards shareholders. Even some bigger players have made major strides along the way, including those often considered a threat to the environment or social issues. One surprising play is a name we’ve seen before—and a stock that’s still an attractive buy today. That company is Walmart (WMT). While it’s been derided on environmental grounds ...
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