Trading Tips Blog

Yesterday, I posted on eight stocks that are considered “Rubber Band Trades.” Micron Technology, Inc (NASDAQ: MU) was one of these stocks in late August. Since that time, the company has received a series of bullish unusual option trades. That trend has continued this week and another large trade materialized on Wednesday that is dovetailing with Goldman Sachs upgrade on Monday. Goldman Sachs analyst Toshiya Hari upgraded the stock to buy from neutral with a $58 price target ...
Read More About This

Fiat Chrysler Automobiles NV (NYSE: FCAU) announced a revision to the merger agreement with Peugeot SA. The agreement was a necessity for the company following the liquidity impact of COVID-19 policies. The company’s desire was to preserve the economic value and balance of the original agreement. Investors appeared to like the deal as the price of FCAU shot up over 7% on Tuesday. However, just before the close there was a large option trade that happened in one print ...
Read More About This

A rubber band stock is a company that has sold off quickly and is ready to snap back. This setup can be explosive because of extreme oversold nature of the price. This setup can be particularly explosive with companies that are trading at a good value and has a stable outlook. Here are eight overstretched value companies poised for a strong rally in the coming weeks. There are several different approaches to apply the concept of a “Rubber Band Trade.” For ...
Read More About This

Franklin Street Properties Corp (NYSEAMERICAN: FSP) is a Wakefield, Massachusetts-based REIT that is focused on infill and central business district (CBD) office properties. The company pays current annual dividend yield of 8.51% and is trading near its 2020 low. As the price is testing the lows, the company has seen the highest amount of insider buying than at any time in the previous four years. In the company’s most recent earnings report they missed analyst estimates for funds from ...
Read More About This

It has been a rough couple of weeks for technology investors as volatility surged to levels not seen since late February. As the price for the Nasdaq 100 chops around near 11,000, some technology names began to see option activity pick up as merger news began to surface. The following three semiconductor companies saw significant option activity on Monday and saw their price moving higher on Monday’s session. The Technology sector was the second worst performing S&P 500 sector last week ...
Read More About This

Looking back over the last several years, September has been a month where insiders have typically sold more shares of Snap Inc (NYSE: SNAP) stock. It has also been a time of year, given its limited history, of underperformance. Comparing the selling so far in September against past years, the number of shares being sold is the highest since September 2017. As the price attempts to rally over the past three weeks, it may be a good time to ...
Read More About This

Oil has fallen over $7 from its high on August 26 and has been consolidating the past four days. As oil prices deliberate, the share price of energy names has been doing the same. While the surface of the energy market is quite bearish, most of these names are oversold. On Monday, the options market appears to have turned more bullish. The significant activity on energy names like Apache Corporation (NASDAQ: APA ) and Occidental Petroleum Corporation (NYSE: Read More About This

The S&P 500 continued its uncertain ways last week as technology shares struggled to find any footing. While the bearishness was the story of the week for most of the market, that wasn’t true for all of the market. Thursday and Friday saw buyers in the materials space perk up and was the only S&P 500 sector to finish in the green for the week. By Friday, it was the Construction Materials along with Metals and Mining that shined. For the ...
Read More About This