Trading Tips Blog

Trader makes in-the-money bet on recovery. The April $75 calls on Qualcomm (QCOM) saw a 17-fold rise in volume, going from 253 open contracts to having over 4,350 trade hands. The bet, expiring in 46 days, is already about $2.30 in the money given the recent share price of $77.30. The trader buying the shares paid about $5.90 per contract. For the option to profit at expiration, shares would need to be back over $81. Even with the recent market rout, shares of Qualcomm ...
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Trader bets on move higher through April. $35 call options with an April expiration on Micron Technology (MU) recently saw a 40-fold rise in volume. The option went from 101 open contracts to over 3,900. The bet, expiring in 49 days is unusual in that this trade made a deep in-the-money bet. With shares around $54, the option is about $19 in-the-money, and should move dollar-for-dollar with shares. The trader also paid about $19 to get into the trade, so there’s nearly no ...
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Trader bets on bounce in shares next month. Over 1,050 contracts traded on the March $136 call options on The Walt Disney Company (DIS). This is an eight-fold rise from the prior open interest of 135 contracts. The option, expiring in 22 days, is a play on shares moving $5 higher from around $130 right now. That’s about a 5 percent jump. Shares have sold off heavily recently as coronavirus fears are likely to impact tourism and travel, in turn lowering revenues at ...
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Traders should take advantage of market fears to buy these names on sale. We’re firm believers that investing is most successful when it’s most businesslike. One way to do that is to find companies that are attractively valued, and then buy them when they’re on sale. It’s a lot like buying groceries and taking advantage of the occasional offer that allows you to stretch your dollars further. Of course, in the real world, it’s tough. Our emotions come into play. But we need ...
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President & CEO adds to stake. Christian Brickman, President and CEO at Sally Beauty Holdings (SBH), recently bought 7,650 shares. The buy cost just under $95,000, and increased his shares by 1.8 percent. This marks the second insider buy at the company this year, following a director buy of 9,000 shares earlier in the month. Insider activity at the company over the past three years shows large numbers of insider buys on a regular ...
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Trader bets on further decline on coronavirus pandemic.  With the global economy set to slow thanks to the coronavirus, traders are hedging their bets. One is betting that United Parcel Service (UPS) will continued to decline from here. That’s based on the 15-fold rise in volume on the April $97.50 put options. From 320 open contracts, over 4,900 recently traded hands. The bet expires in 51 days. It is less than one dollar out-of-the-money thanks to the current share price just ...
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CEO and director add to insiders picking up shares here. Gregory Heckman, CEO at Bunge (BG) recently bought 37,180 shares. That buy increased his holdings by nearly 40 percent. The cost of the purchase came to just under $2 million. He was joined by director Erik Fyrwald, who bought 3,750 shares. His total buy came to just under $200,000, and he increased his holdings by nearly 55 percent. This comes on top of insider buying by the company CFO ...
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Major owner continues to add to stake. Randall Williams, a major holder and director at Enterprise Products Partners (EPD), continues to add to his stake. In February, he has bought in 50,000 share increments on 13 different trading days. That’s a total of 650,000 shares. Each daily buy of this nature costs just over $1.3 million. Insider data shows these buys are dwarfing all prior buys and sells in the past few years at ...
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