Trading Tips Blog

Shares of United Parcel Service (UPS) dropped to a 52-week low last Thursday, and shares are now down 20% over the past year. One trader sees a rebound in the coming weeks. That’s based on the June 21 $136 calls. With 18 days until expiration, 10,588 contracts traded compared to a prior open interest of 109, for a 97-fold rise in volume on the trade. The buyer of the calls paid $3.40 to make the bullish bet. UPS recently traded just over ...
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Different companies have different ways of offering products and services to their consumers. Wall Street prefers to see companies that have as much consistency to their revenues as possible. That’s why cyclical companies tend to vastly underperform the markets at some times, and outperform at others. Today, Wall Street loves seeing companies that can generate recurring revenues. It’s better to have monthly billing rather than make one-time sales, even if the overall revenue is the same. While this has been seen as ...
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Jarrod Yahes, CFO of Shutterstock (SSTK), recently bought 5,350 shares. The buy increased his stake by 14%, and came to a total cost of $199,822. This is the first insider buy since a director bought 10,000 shares in June 2022. Otherwise, company insiders have been sellers, with the biggest sales coming from the company’s Chairman of the Board, who is also a major holder. Overall, Shutterstock insiders own 31.2% of shares. The image service company is down 27% over the past ...
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Major U.S. carrier American Airlines (AAL) slid 15% earlier this week, amid a warning on earnings. One trader sees a further slide over the next six months. That’s based on the November $8 puts. With 168 days until expiration, 47,299 contracts traded compared to a prior open interest of 433, for a massive 109-fold rise in volume on the trade. The buyer of the puts paid $0.18 to make the bearish bet. American Airlines shares recently traded for over $11.50. Shares would ...
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Traders looking to profit over a multi-month period can often get a good return following activist shareholders. Typically, activists build a position then disclose it. Once they do, they also make note of changes they’d like to see at the targeted company. Some companies will work to make those changes, and get the activist shareholder to move on. Others may resist, and then have to deal with a boardroom battle. How this plays out can lead to wide returns in how ...
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Joseph Kim, President and CEO of Sunoco LP (SUN), recently added 5,000 shares. The buy increased his holdings by 1%, and came to a total cost of $252,516. Kim also bought 5,000 shares last June, paying $177,475 for that tranche. One company director bought 1,500 shares for just over $78,000 last month. There has been one insider sale over the past year from the company’s General Council. Overall, Sunoco insiders own 21.5% of shares. The oil and gas refining and marketing company ...
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Gold producer Kinross Gold (KGC) is soaring along with the price of the metal, with shares up 73% over the past year. One trader sees the stock taking a breather over the next two months. That’s based on the July $8.00 puts. With 50 days until expiration, 4,779 contracts traded compared to a prior open interest of 109, for a 44-fold rise in volume on the trade. The buyer of the puts paid $0.35 to make the bearish bet. Kinross shares recently ...
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The Wall Street saying “Sell in May and go away,” isn’t about getting out of the market. Rather, it’s a warning that the market’s returns in the middle few months of the year tend to slow. But even through the summer, it makes sense to stay invested. It’s only September and October that are historically challenging for investors. With a summer slowdown the seasonal norm, investors can find opportunities, particularly with dividend-paying stocks. While dividends haven’t gotten as much attention in the ...
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