Trading Tips Blog

Shares of AES Corp (AES) have rallied by over 25 percent in the past few months. At least one trader sees the utility company pulling back from these levels. That’s based on the January 15th 2021 $20 puts. Expiring in just 30 days, over 4,050 contracts traded against a prior open interest of 186, for a 22-fold rise in volume. With shares at $21.65, shares would need to fall nearly 8 percent for this trade to move in-the-money. The option buyer paid ...
Read More About This

Shares of Virgin Galactic (SPCE) dropped heavily on Monday, as the company’s latest test flight triggered a failsafe. But at least one trader recognizes that rocket science is complex, and shares will recover. That’s based on the January 8th 2021 $27.50 calls. Expiring 24 days, over 1,400 of the contracts traded hands, a 13-fold increase in volume over the prior open interest of 110. The trader paid about $2.65 for the options. Shares fell to just under $27, making this an at-the-money ...
Read More About This

Some companies have fared better than others this year. The restaurant space has been decimated, as sales have plummeted. But while that’s been hard-hitting for family-owned operations, large, publicly-traded firms have held up well. These are the companies that were already capable of providing their goods via pickup (such as drive-thru) and delivery options. So it’s no surprise that these restaurants have held up better, and will likely continue to do so. However, since the announcement of a Covid vaccine, a number ...
Read More About This

Anna von Bayern, the Chief Corporate Affairs Officer at Coty (COTY), recently started a stake with a 32,100 share buy. The total price came to just over $232,000. This is the first buy from a company executive in months, but company directors have been active buyers over the past few months. In total, a handful of directors have picked up over 1.1 million shares of the cosmetics company. Overall, insiders own over 62 percent of shares. Shares of the firm have ...
Read More About This

Robert Singer, a director at Keurig Dr Pepper (KDP), recently added 2,500 shares to his stake. That increased his holdings by 11 percent. The total purchase price came to just over $75,000. That’s on top of another buy made from the director in November of 7,500 shares, which came to just over $226,000. Insiders have generally been sellers in the past year, although that’s occurred at the major shareholder level by firms JAB Holdings and Mondelez International. Despite the large sales, ...
Read More About This

It’s been an off year for apparel companies. With rising unemployment and work from home trends, a number of categories of sales have slumped. One analyst sees that changing. With companies increasingly moving staff back to the office, and with a vaccine in sight, a number of apparel companies look poised for a sales rebound in the coming year. That should lead to an attractive move higher. One such player is Nike (NKE). Best known for shoes and sports apparel, sales haven’t ...
Read More About This

Shares of Arrowhead Pharmaceuticals (ARWR) have more than doubled since mid-September. With a strong uptrend in place, at least one trader is betting on a further move higher. That’s based on the March 2021 $90 calls. Over 2,100 contracts traded against a prior open interest of 121, for a 17-fold rise in volume. With shares just under $75, they would need to rise another 20 percent by expiration for the option to move in-the-money. The trader paid about $5.40 for the contracts ...
Read More About This

Income investors are a shy bunch. If a company looks like it’s not going to provide investors with the same (or a growing) level of income, they’ll leave. When that happens, a price drop occurs, sometimes creating a value opportunity. While investors may not want to stay in a company that’s cut their dividend, sometimes buying a company after it cuts its dividend makes sense. The lower price paid may offset a decline in yield. That looks to be the case with ...
Read More About This