Trading Tips Blog

Shares of conglomerate Berkshire Hathaway (BRK-B) dropped slightly after reporting record earnings for the fourth quarter of 2023. One trader sees shares trending higher in the coming weeks. That’s based on the April $430 calls. With 51 days until expiration, 11,615 contracts traded compared to a prior open interest of 292, for a 40-fold rise in volume on the trade. The buyer of the calls paid $2.75 to make the bullish bet. Berkshire shares recently traded for about $410, so they would ...
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Markets often treat some sectors better than others. Tech often gets the attention, but even in that space, right now AI-related names are attracting the most attention. Other sectors are out of favor with investors, either because of lower perceived growth, or because the market is too interested in what’s hot right now. Either way, that sets up opportunities for investors to buy unloved sectors today. In time, those sectors can come back into favor. Right now, media companies are out of ...
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Reginald Brown, a director at Blackstone (BX), recently added 2,400 shares. The buy increased his holdings by 16 percent, and came to a total cost of $301,500. The buy came a few weeks after another director bought 293 shares, paying $37,237. Going further back, company directors have been more mixed, with some making some sales into the seven figures. The company’s chief accounting officer and general council have also been sellers over the last year. Overall, Blackstone insiders own 0.5 percent ...
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Telecom provider Frontier Communications Parent (FYBR) is down 17 percent over the past year as the telecom space has been a poorly-performing part of the market. One trader sees further downside ahead. That’s based on the May $22.50 puts. With 80 days left until expiration, 10,530 contracts traded compared to a prior open interest of 295, for a 36-fold rise in volume on the trade. The buyer of the puts paid $2.50 to make the bearish bet. Frontier shares recently traded for ...
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Consumer spending data has been mixed over the past year. One of the biggest disconnects is the slowdown in traditional spending while discretionary spending has increased. In the discretionary space, travel demand has remained strong. Consumers still want to travel, and are keeping airplanes full and hotel rooms booked. They’re also showing a strong demand for other niches in the travel and tourism market as well. One beneficiary is the cruise industry. Bookings remain strong, and companies like Royal Caribbean Cruises (RCL) ...
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Jorge Mesquita, a director at Humana (HUM), recently bought 545 shares. The buy increased his position by 27 percent, and came to a total cost of $200,066. This marks the first insider buy at the health insurer over the past two years. There have been several insider sales, including from the CEO and CFO, including some sales of as much as $8.9 million in shares. However, all sales over the past two years have occurred following the exercise of stock options. Overall, ...
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Electric vehicle manufacturer Rivian Automotive (RIVN) saw shares sink 25 percent last week following earnings. One trader is betting that the drop was an overreaction and shares will trend higher. That’s based on the April $12.50 calls. With 52 days until expiration, 7,784 contracts traded compared to a prior open interest of 173, for a 45-fold rise in volume on the trade. The buyer of the calls paid $0.98 to make the bullish bet. Rivian shares slid to about $11.50 after earnings, ...
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Earnings season offers investors a number of second chances to buy great stocks. One of the best ways to get an opportunity is when a stock sells off for providing poor guidance. The market likes certainty, and is willing to pay up for it. While guidance may be weak, a company that’s reporting great earnings should head higher over time, no matter what guidance expectations it makes for investors (if any). Cybersecurity stocks stumbled earlier this week after Palo Alto Networks ...
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