Trading Tips Blog

Traders betting on rally after Fed approves capital plans. Shares of
Bank of America (BAC) could move up to 23 percent higher between now and February. That’s based on a surge in volume on the February 21st 2020 $36 calls. Over 1,400 contracts traded on Monday, about a 12-fold increase in the existing open interest on the bank. Shares are currently around $29.50, so this out-of-the-money trade needs the big percentage move to lock in a profit by the expiration in February. Last week, the ...
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Major fund holder adds 4.6 million shares. CD&R Investment Associates, already a 10 percent owner, has been adding to its stake in
Beacon Roofing Supply (BECN). Typically, when large investment funds increase their stake, it’s because they see the same value as other insiders. However, funds can also acquire board seats and otherwise push a company to make changes it might not otherwise—to the benefit of shareholders. On June 28th, the fund bought 4.6 million shares, a $158 million commitment. That increased its total ...
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Company CEO makes third buy in the past five weeks. Insiders continue to be buyers in the energy sector, even after oil prices have started moving higher. The latest example? Natural gas pipeline company
Altus Midstream Company (ALTM). On Thursday, CEO Clay Bretches picked up 15,000 shares of the company, paying nearly $55,000. It also increased his total stake by over 37 percent, a huge additional buy in. This follows up on buys of 20,000 shares on June 14th, and 20,000 shares back on ...
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Big trade bets shares will rally in July.
Shares of
AbbVie (ABBV) dropped nearly 15 percent on news that it was planning to acquire Botox maker Allergan. One trader is betting that the move was overdone. On Friday, over 3,200 contracts traded on the August 2, 2019 $80 call option. With 35 days left to expire and AbbVie prices just under $72, the option is a bet on an 11 percent rally in shares in the month of July. That kind of percentage move ...
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There are a lot of ways to make money in the market. But even if you find that rare company that can move ten-fold and provide one of the best profits of your lifetime, that will take time.Most investors get impatient. Trading Tips’ Andrew Packer explains why you should be looking at blue-chip bargains ...
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Trader bets on more downside for tobacco giant. Tobacco companies have had a rough year, amidst long-term sales declines and a decision to pass on major investments in the growing cannabis industry. One trader sees some more downside, with a large put option trade on
Altria (MO). On Thursday, over 9,500 contracts of the July 12th $49 put options traded, a 57-fold increase in volume on the option. This option, with shares at $48, is already in-the-money. So while it expires in 15 days, ...
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Two insiders buy over $600,000 in shares.
Insiders still remain incredibly bullish across the biotech and pharmaceutical space. On Wednesday, two insiders bought shares at
Biohaven Pharmaceutical Holding Company (BHVN). CEO Vlad Coric bought 5,000 shares, shelling out just over $201,000. And director John Childs bought 10,000 shares, paying just over $403,000. This marks the first insider buys at the company in over two years, following insider sales last year in the $50-60 range. With shares in the low $40’s, the insider buys look like ...
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Traders bet on drop following big earnings beat.
Shares of
Micron Technology (MU) surged over 14 percent on Wednesday thanks to a massive earnings beat. But some traders think the stock has rallied too much. On Wednesday, a large number of contracts with unusual options activity centered around put options on Micron, with many expiring on Friday, just two trading days away. One further out, the August 2nd $32 put options, has over a month to play out. This option had over 1,600 contracts on ...
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