Trading Tips Blog

On Friday, Barclays Bank downgraded the FANG stocks and Microsoft (MSFT), to market weight. That’s a neutral rating overall, but given that the word “sell” is a dirty word on Wall Street, it’s a major shot across the bow of the major companies that have driven markets higher in the past year. The biggest insult? Barclays stated its main concern: That stock valuations are completely out of whack, and on par with a level last seen during the tech bubble. The ...
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The November $21 put options on Snapchat (SNAP) saw a massive 165-fold surge in volume, with over 30,200 contracts trading hands on Friday. The bet, expiring in 60 days, is nearly 10 percent out-of-the-money, given the recent share price of $23.82 on Friday. The trader buying the contracts paid about $1.25 per contract. For the option to profit at expiration, shares would need to slide under $20 between now and November. Shares of the social media company are up nearly 40 percent in ...
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Louis Vachon, a director at Molson Coors Beverage (TAP), recently added to his stake with a 3,000 share buy. That brings his total holdings to over 26,400 shares for a 13 percent increase. The total buy came to just over $105,000. With the stock market in selloff mode, a holding in the beverage space is a great defensive sector to be in, so it’s no surprise that directors are buying now. That said, it’s really the valuation right now that ...
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The Azek Company (NYSE: AZEK) closed its share offering on Tuesday for 25 million shares and an additional 3.75 million shares exercised by underwriters. The price of the offering was at $33.25 a share, but the proceeds go to large shareholders in the company that are looking to cash out. The breadth sellers involved, and size of the offering makes you wonder whether insiders are anticipating a lot more downside. The Azek began trading on the secondary market on June ...
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As the market weakened Fed announcement on Wednesday, the options market on the SPDR S&P 500 ETF Trust (NYSEARCA: SPY) began to heat up on Thursday. The price of the SPY opened lower near the previous low and was able to stabilize around that level. However, as the price was stabilizing, there were some sizeable bearish option trades being made that indicate that level won’t hold. Looking back over the past couple of weeks, there has been several days where ...
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Do you remember the Nifty Fifty? These were the original “Blue Chip” buy and hold stocks in the 1960’s and 1970’s. That strategy worked until the late 1970’s and 1980’s. The FAANGs or FAAMGs are the new Nifty Fifty at least in terms of the breadth of ownership. The question is when will these names be replaced by a new generation of growth companies and who will they be. Goldman Sachs attempted to provide that answer with their own ...
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In the current market climate where people are moving a lot, it makes sense that a storage company may see some opportunity. Public Storage (NYSE: PSA) is a real estate investment trust (REIT) that does just that and they currently pay a 3.56% dividend yield. Just as this market is potentially heating up, insiders have started buying shares. These are the first insider buy transactions since August of 2017. Maybe this is a good time to revisit PSA as ...
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One of the trends of the pandemic is the increase in pet ownership. Of course, when you get a pet you need to care for them. That means food, medical care, and various miscellaneous supplies. In this story, clothing is optional. The shift to online ordering and increased pet ownership has created opportunity for investors. Here are four companies that have had recent pullbacks that are setup to buy the dip. Pet Stock #1: Chewy Inc (NYSE: CHWY) Chewy is a ...
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