Trading Tips Blog

Automobile producer General Motors (GM) jumped nearly 10 percent on Wednesday, on news that they were undertaking a large share buyback. One trader sees the potential for shares to trade flat or lower from here instead. That’s based on the June 2024 $32 puts. With 217 days until expiration, 8,276 contracts traded compared to a prior open interest of 219, for a 38-fold rise in volume on the trade. The buyer of the puts paid $2.70 to make the bearish bet. General ...
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While the market still loves rewarding AI-based companies, the trend is an early one. It will take time to roll out. And much like the rollout of the internet, there will be big winners and losers. Fortunately, investors have other tech trends to profit from. That includes trends that are already bringing in revenues for companies today. One of the hottest such trends is cloud services. That’s been a big driver for many big tech companies. But it’s a solid performer for ...
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Ivan Kaufman, CEO at Arbor Realty Trust (ABR) recently bought 35,000 shares. The buy increased his stake by 1 percent, and came to a total cost of $426,450. He was joined by the company CFO, who bought 10,000 shares on two separate transactions, for just under $123,000. A company director has also been a buyer in recent weeks. Going further back, insider buys have far exceeded insider sales. Overall, Arbor insiders own about 2.2 percent of shares. The mortgage REIT is ...
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Tech giant Amazon (AMZN) is up about 60 percent over the past year, and the company is holding up well as retail is showing signs of strength this holiday season. However, one trader is betting shares may be done moving higher. That’s based on the February $180 puts. With 78 days until expiration, 3,864 contracts traded compared to a prior open interest of 104, for a 37-fold rise in volume on the trade. The buyer of the puts paid $32.65. Amazon shares ...
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While growth stocks have staged a strong comeback in recent weeks, income stocks remain well off their highs. The good news is that these stocks offer a historically higher yield than at most other points over the last two years. And should interest rates start to trend down next year, income stocks should trend higher to match that change in yields. That means today’s investors can get a relatively high yield, plus see some capital appreciation ahead. One income-heavy space is cell ...
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Grier Eliasek, COO at Prospect Capital (PSEC), recently bought 26,750 shares across two transactions. The buys came to a total price just over $153,000, and increased the COO’s position by about 2 percent. Those buys came a few weeks after the company CFO bought 5,000 shares, paying just over $28,000 and increasing her stake by about 7 percent. Insiders have only been buyers over the last two years. In total, Prospect Capital insiders won 27.4 percent of shares. The business development company ...
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Utility company Dominion Energy (D) is down over 22 percent this year, as rising interest rates have hit interest-rate sensitive stocks hard. Shares have started to move higher, and one trader sees a continued rally higher in the months ahead. That’s based on the April 2024 $52.50 calls. With 142 days until expiration, 10,001 contracts traded compared to a prior open interest of 274, for a 37-fold rise in volume on the trade. The buyer of the calls paid $0.70. Dominion shares ...
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Economic trends can shift over time, and catching them near the start can lead to big profits. The strategy is to identify which sectors will benefit from that shift, and invest with the industry leaders, who are best poised to profit. One trend coming next year is a rise in business travel. It’s been slow to recover since virtually ending during the pandemic, but 2024 looks like it will be the strongest year yet for this trend. Business travel means expensed airline ...
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