Trading Tips Blog

The October $132 call options on The Walt Disney Company (DIS) saw a massive surge in trade. Over 8,800 contracts traded hands on Tuesday. Compared to the open interest of 155 contracts, the activity represented a 57-fold rise in volume. With shares around $126, the stock would need to rise just under 5 percent in the next 23 days for the option to close in-the-money. The buyer of the options paid around $1.47, so shares would need to rise closer to $133.50 ...
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With the price of Bitcoin still hovering around $10,000, investors and traders alike are increasingly interested in the space. So are cryptocurrency miners, who are still able to eke out a modest profit every day right now. But new graphics processing chips are allowing that profitability to improve. And two competing firms looks like the best place for investors to take advantage of this ongoing trend. The two big players? Nvidia (NVDA) and Advanced Micro Devices (AMD). Currently, AMD’s top of the ...
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On Monday, Goldman Sachs analysts came out in favor of two large-cap, industrial names to buy now, citing the time was right to buy. Those names? Boeing (BA) and Raytheon (RTX). On their face, both look risky. Boeing’s orders have dried up thanks to a drop in air travel. And defense spending could be one of the few areas to be cut should Biden win the November election just weeks away. But on a relative valuation, there is a good argument for higher ...
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Olivier Le Peuch, CEO at Schlumberger (SLB), recently added to his stake with a 25,000 share buy. That brings his total holdings by 15 percent to over 191,700 shares. The total purchase came to just over $448,000. The buy comes as the oil and gas service and equipment supplier faces challenging times. With oil demand and prices down over the past year, the share price has slid by nearly half. What’s more, revenues have dropped by over a third. The company ...
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The March 2021 $80 call options on Wynn Resorts (WYNN) saw a huge 51-fold surge in volume, with over 10,100 contracts trading hands on Monday against an open interest of just under 200 contracts. The bet, expiring in about six months, would close in-the-money if shares rallied about 10 percent from the current price near $72. The trader buying the contracts paid about $10, or $1,000 per contract. In order to make money at expiration, shares would need to surge up to $90, ...
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As the market began to fade on Friday, there were a coupe of large option trades on the iShares MSCI Japan ETF (NYSEARCA: EWJ). Just as the ETF was testing its 2020 high, it appears that the options market is beginning to turn bearish through some sizable long put trades. The activity comes at a time when equity markets historically struggle and as stimulus appears to be waning before the election. EWJ broke through a resistance area near $58.80 last ...
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You wouldn’t normally think of investing in steel producing companies in a recession, but these are unusual times. Last week, It was steel producing companies and metallurgical coal companies that led the way in an otherwise disappointing week for the market. After the Federal Reserve failed to deliver the stimulus last Wednesday, it may be the likelihood of a stimulus bill that includes infrastructure or just expectations of a rebound in the economy. Either way, these were companies that led ...
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Zscaler Inc (NASDAQ: ZS) is a cloud security company that announced earnings on September 9 that comfortably beat analyst estimates but saw its share price decline on the announcement. As the price has been searching for support, a number of insider sale transactions have begun to pop up. The response to the report and the transactions occur as the company discussed scrapping their profitability goal for increased operating margins during their earnings call. Zscaler is company that is experiencing ...
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