Trading Tips Blog

Sports gaming site DraftKings (DKNG) is up 39% in the past year, beating the overall returns of the stock market. One trader sees shares trending higher in the coming weeks. That’s based on the July 5 $36 calls. With 30 days until expiration, 11,050 contracts traded compared to a prior open interest of 119, for a 93-fold rise in volume on the trade. The buyer of the calls paid $1.57 to make the bullish bet. DraftKings shares recently traded for about $35.50, ...
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Most market sectors move in and out of favor with investors over time. One simple strategy for investors is to buy out-of-favor sectors, and then look to take profits when that sector turns around. Doing so can create market-beating returns consistently, and keep out of sectors that are overly loved and may be poised to see a massive drop. Today, a few sectors remain out of the market’s favor, including one in the tech space. That niche part of the tech market ...
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Marvin Riley, a director at Wolfspeed (WOLF), recently bought 1,866 shares. The buy increased his stake by 16%, and came to a total cost of $50,481. This is the first insider buy since February, when a cluster of four directors bought nearly 10,000 shares each, at a cost of around $250,000 for each director. The last insider sale occurred last December, when the company CFO sold about 6% of his stake. Overall, Wolfspeed insiders own 0.9% of shares. The silicon carbide ...
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Discount retailer Dollar Tree (DLTR) is down 10% over the past year amid a slowdown in consumer spending on goods. One trader sees shares trending lower in the weeks ahead. That’s based on the August $110 puts. With 72 days until expiration, 3,502 contracts traded compared to  a prior open interest of 110, for a 32-fold rise in volume on the trade. The buyer of the puts paid $1.76 to make the bearish bet. Dollar Tree shares recently traded for about $118, ...
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For all the clamor in the AI space, most investors have largely focused on large companies. On the surface level, that makes sense. Big-name tech firms have billions of dollars that they can easily throw into AI projects. If there’s even a small boost to the company’s bottom line, it can mean big bucks for shareholders. But smaller AI plays look attractive now too. That’s because these companies have a smaller market cap. As smaller companies grow, they can see a massive ...
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Melanie Healey, a director at Hilton Worldwide Holdings (HLT), recently bought 2,000 shares. The buy increased her stake by 15%, and came to a total cost of $399,299. This is the first insider buy in just over a year. Another director bought 695 shares for just under $100,000 in May 2023. Otherwise, company insiders have been slight sellers of shares in the last year, with most of those sales coming following the exercise of stock options. Overall, Hilton insiders own 2.1% ...
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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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