Trading Tips Blog

Payroll processing company Automatic Data Processing (ADP) is up 15 percent over the past year, slightly underperforming the overall stock market. One trader sees further upside in the months ahead. That’s based on the April $270 calls. With 49 days until expiration, 3,731 contracts traded compared to a prior open interest of 108, for a 35-fold rise in volume on the trade. The buyer of the calls paid $0.65 to make the bullish bet. ADP shares recently traded for about $251, so ...
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The rollout of artificial intelligence (AI) software over the past two years has led to a boom in those who create the software, as well as the hardware needed to run it. For the most part, the rollout has been based on cloud-based or computer services. However, the next iterations of AI will succeed because they’ll be usable on all sorts of devices, including mobile ones. That could mean a surge in chips capable of powering AI programs on smartphones. In this ...
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Mahvash Yazdi, a director at Northwestern Energy Group (NWE), recently bought 1,000 shares. The buy increased the director’s stake by 7 percent, and came to a total cost of $48,800. This marks the sole insider activity at the South Dakota-based electric utility company over the past two years. There has also been no activity by major holders over the same timeframe. Overall, Northwestern insiders own 0.9 percent of shares. The utility has slid 15 percent over the past year. Rising interest ...
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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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