Trading Tips Blog

Traders know to play the airlines and cruise lines on any pandemic related headline. But there’s a secondary category of companies that have been impacted by this year as well. On the positive side, many tech names have gotten market attention. But a number of consumer names without a technology angle have been reasonable winners right now. Some even offer investors high dividends in today’s zero percent interest world. One such company is Newell Brands (NWL). The maker of Rubbermaid containers cited ...
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At least one trader sees a massive surge higher in shares of megabank Wells Fargo (WFC) this month. That’s based on the rise in volume on the November $24.50 calls, expiring in 17 days. The options saw over 68,000 contracts trade against an open interest of 3,300 contracts, a 20-fold rise in volume. Shares currently trade under $22, so the call buyer is betting on a double-digit rally in shares. Shares of Wells Fargo took a dive last week following earnings. While ...
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Jasmin Staiblin, a director at NXP Semiconductor (NXPI), recently bought 1,500 shares. The buy increased her holdings by over 135 percent, and came to a total price of just over $135,000. As is typical of a tech company, insiders are mostly sellers of shares, with a heavy concentration of selling at the executive vice president level. However, this was the second buy of the year from insiders following another director purchase back in April. NXP, based out of the Netherlands, has ...
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Jon Springer, President and CRO at Universal Insurance (UVE), recently picked up 10,000 shares. The buy increased his holdings by nearly 2 percent and came to just over $117,000. He was joined by Stephen Donaghy, CEO, who also picked up 10,000 shares, paying just over $119,000. The company CIO also picked up 350 shares. This is the second cluster of insider buying in 2020, and insiders have been entire buyers since 2019. Universal Insurance is a property and casualty insurance company ...
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Certain sectors of the economy tend to be more susceptible to an election than others. Defense spending can impact the value of defense contractors. One of the bigger areas that tends to see big swings? Managed-care companies, also known as health insurers. History shows that these companies tend to decline before an election, and then recover. A recent analysis shows that these stocks tend to underperform the stock market by over one-third heading into an election. That’s a good argument for ...
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Chinese electric-vehicle company NIO Limited (NIO) has been a runaway winner and popular stock to trade. One trader sees shares heading even higher before the end of the year. That’s based on the surge in buying on the December $39 calls. Over 1,580 contracts traded on Friday, a ten-fold rise in volume from the prior open interest of 158. The trade expires in 48 days, and requires a near-30 percent jump in shares from here to move in-the-money. The trader paid about ...
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Defense contractor Raytheon (RTX) has seen shares slide in recent sessions following a probe over its contracts with the U.S. government. But at least one trader sees the issue being a short-term one. That’s evidenced by the trade in January 2022 $55 call options. Over 4,600 contracts traded yesterday against an open interest of 553, for an eight-fold increase in volume. The trader paid $6.60 on average for a contract just $2.50 out-of-the-money. Shares of RTX have dropped over 15 percent since ...
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2020 has been a tough year for companies trying to reward shareholders interested in income. Some have voluntarily suspended, reduced, or cut their dividends. Others have not acted voluntarily. But a few companies have continued to fare well. And a high-yielding company that has managed to maintain its dividend this year is likely to be a big winner in the years ahead. A company that can thrive amidst a pandemic is the kind of company long-term investors want to own. One surprising ...
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