Trading Tips Blog

Traders are betting on a big move higher in GoPro (GPRO). The July 2021 $5 calls just saw over 2,500 contracts trade, a 24-fold surge in volume over the prior open interest of near 100 contracts. Expiring in 291 days, the bet is that shares will rally over 10 percent from their current price near $4.25. The call buyer paid about $0.84, or $84 per contract, on average. Shares of the "selfie stick" company will need to move over 25 percent higher ...
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Eric Palmer, the Chief Financial Officer at Cigna (CI), recently picked up 1,000 shares. The buy cost just over $168,000, and leaves the CFO with over 26,800 shares, a 3 percent increase. As a large, publicly-traded company, there are a number of both buys and sells over the past year, with sellers far outweighing buyers. This is the second insider buy since June. Generally, a CFO buy is a solid sign. As the company’s main expert on finances, a CFO tends ...
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Bank stocks can either be a great investment or a terrible one, depending on the timing. With the economy struggling to recover, banks aren’t the most obvious candidate for a rally. Yet many investors are gravitating towards them as investment opportunities now. Part of that may be the relative valuation of the banks, as they haven’t had the strong rallies of the tech sector. Another part is that, while interest rates may weigh on profitability, the banks will still profit. One such ...
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The energy sector continues to slide lower, and traders are betting that the trend will continue. A number of bearish trades have been made against Occidental Petroleum (OXY). The most active was the October 30th $10 put. Expiring in just 35 days, shares would need to fall about 3 percent from their current price of $10.30 to move in-the-money. Over 2,153 options traded against an open interest of 111, for a 19-fold rise in volume. The buyer paid about $0.82 per contract, ...
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Activist investors can often point to undervalued companies that need to make a few major changes in order to unlock tremendous value. That’s why the recent purchase by activist investor Nelson Peltz is attracting attention. The latest undervalued find is a company in the media space that also has some legacy operations. Any transformation there that improves profitability could score a huge win for shareholders. The company? Comcast (CMCSA). Owner of a cable network, over the past decade the company has ...
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Henry Samueli, a director at Broadcom (AVGO), recently picked up 101,740 shares. The buy increased his stake by about 1 percent but came to a whopping $36.7 million thanks to the company’s high share price. This is the second insider buy this month following the 167 share buy from director Raul Fernandez, a purchase that came to over $60,000. Insiders have mostly been sellers this year. Shares of the semiconductor company are up about 30 percent in the past year. The ...
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The November 2020 $27 calls on Snap Inc. (SNAP) saw an 88-fold jump in volume, with over 28,560 contracts trade hands from an open interest of 321. The option, expiring in 57 days, is a bet that shares will rally just under 10 percent from their current price near $25.75. The option buyer paid about $2.29 for the option, so shares would need to trade as high as $29.30 to profit come expiration, a much bigger hurdle. Shares of the social media ...
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Albert Monaco, a director at timberland owner and operator Weyerhaeuser (WY), recently picked up 10,000 shares. The overall stake cost just over $291,000, and more than doubled the director’s stake. This marks the first director buy since March. Over the past year, there have been a number of both buys and sells at the company by C-suite executives as well as company directors. Shares of the company have traded slightly down over the past year. Revenue and earnings are slightly down, ...
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