Unusual Option Activity: Dollar Tree (DLTR)
Discount store chain Dollar Tree (DLTR) is down 6 percent over the past year, as the dollar store space has struggled with low margins. One trader sees further downside ahead. That’s based on the June 2024 $80 puts. With 157 days until expiration, 7,603 contracts traded compared to a prior open interest of 124, for a 61-fold rise in volume on the trade. The buyer of the puts paid $0.40 to make the bearish bet. Dollar Tree shares recently traded for about ...
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The Thawing Housing Market Bodes Well for Underperforming Industry Leaders
2023 saw the housing market freeze up. Existing homeowners didn’t want to move, as they would have to pay significantly higher for a mortgage than on their existing home. That resulted in a tight housing inventory, which helped keep home prices high. 2024 will likely see interest rate cuts. Mortgage rates have already dropped, and some potential sellers are hitting the markets. With the housing market thawing out, potential sellers may start looking to spruce up their homes. That bodes well for ...
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Insider Activity Report: STAAR Surgical Company (STAA)
Broadwood Partners, a major holder at STAAR Surgical Company (STAA), recently added 226,553 shares. The buy increased the fund’s position by 1 percent, and came to a total cost of $6.48 million. This marks the first insider activity since December, when a company director bought 850 shares for a cost of $26,129. Broadwood Partners was active acquiring shares throughout last year as well. The last insider sale occurred in March 2023. Overall, STAAR insiders own 0.7 percent of shares, and institutions ...
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Unusual Option Activity: PayPal (PYPL)
Despite a trend higher in recent months, online payment platform PayPal (PYPL) is still down 21 percent over the past year. One trader expects shares to trend lower in the coming weeks. That’s based on the February 9 $51 puts. With 28 days until expiration, 6,005 contracts traded compared to a prior open interest of 113, for a 53-fold rise in volume on the trade. The buyer of the puts paid $0.39 to make the bearish bet. PayPal shares recently traded for ...
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Smaller Players Will Likely Win This Year’s AI Battle
Last year, the market was obsessed with the AI theme. While there’s been some market rotation, it’s clear that the AI trend is here to stay. But given how much the big players in the space have run, investors may be better off buying smaller names. For the AI hardware stocks, that may be a tall order. However, there are plenty of AI hardware stocks that still have plenty of room to run. One such potential winner is Marvell Technology (MRVL). The ...
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Insider Activity Report: VOXX International (VOXX)
Steven Downing, a director at VOXX International (VOXX), recently bought 1,568,750 shares. The buy increased his stake by 90 percent, and came to a total cost of $15.69 million. This follows up on a 1.57 million share pickup made by the director back in October. Other company directors have been buyers in the past year, albeit at a far smaller size. On the sell side, the company’s President has been a sizeable seller of shares in recent months. Overall, VOXX insiders ...
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Unusual Option Activity: KBR (KBR)
Engineering firm KBR (KBR) lagged the overall stock market last year, rallying about 10 percent. One trader expects shares to make up for lost ground in the first half of 2024. That’s based on the June $57.50 calls. With 162 days until expiration, 5,041 contracts traded compared to a prior open interest of 115, for a 44-fold rise in volume on the trade. The buyer of the calls paid $2.50 to make the bullish bet. KBR shares recently traded for about $54, ...
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Improving Profit Margins Can Mean Big Bucks for Shareholders
Investors have many ways of looking at a company. Ideally, a company will show growth. But a company can do much to show growth, and even pay up to do so. That could mean a winning share price in the short-term, at the risk of long-term dangers to a company. That’s why investors should look for companies that can grow and improve their profit margins over time. That’s a sign of a company getting better at doing its job, and having ...
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