Trading Tips Blog

The market has been in rotation mode for a few weeks now. High-flying tech stocks have been underperforming as other sectors have been beating the market instead. If that trend continues, then many sectors that lagged in last year’s rebounding stock market could trend higher. That means a number of companies in traditionally slower-moving parts of the market could have above-average returns in the months ahead. For instance, with the market up 20 percent over the past year, Comcast (CMCSA) is up ...
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Avijit Ray-Chaudhuri, an EVP at Aehr Test Systems (AEHR), recently bought 3,000 shares. The buy increased his stake by 45 percent, and came to a total cost of $53,600. This marks the first insider activity of the year. It’s the first insider buy since October, when a company director bought 700 shares. Otherwise, company insiders have been steady sellers of shares over the past year. Only a small fraction of the sales came from the exercise of stock options. Overall, Aehr ...
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Wall Street megabank Bank of America (BAC) recently reported earnings. The market didn’t care too much for them, and one trader is now betting that shares will trend lower in the coming weeks. That’s based on the February 9 $31 puts. With 22 days until expiration, 11,249 contracts traded compared to a prior open interest of 178, for a 63-fold rise in volume on the trade. The buyer of the puts paid $0.18 to make the bearish bet. Bank of America recently ...
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Many stocks aren’t near their all-time highs, even as the market headlines are. That could be an opportunity for investors, particularly those who focus on undervalued industry leaders. Leaders will typically lead the rest of the sector higher once a turnaround starts. They also tend to sport the best profit margins. And for dividend-paying sectors, leaders tend to offer the best yields. The restaurant space lagged last year, as rising interest rates weighed on this defensive part of the market. McDonald’s (MCD) ...
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Fund 1 Investments, a major holder of Tilly’s (TLYS), recently bought 130,302 shares. The buy increased the fund’s position by 2 percent, and came to a total cost of $936,186. This marks the fund’s first buy of the year. The fund was heavily active throughout 2023, buying shares steadily over a dozen times. The company’s CFO also bought 3,400 shares last year, paying just over $21,000 to do so. And two directors made small sales. Overall, Tilly’s insiders own 2.5 percent ...
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Freight and logistics company United Parcel Service (UPS) is down 12 percent over the last year as consumer spending on goods has slowed. One trader sees shares trending higher in the coming weeks. That’s based on the February 9 $170 calls. With 23 days until expiration, 4,416 contracts traded compared to a prior open interest of 231, for a 19-fold rise in volume on the trade. The buyer of the calls paid $1.85 to make the bullish bet. UPS shares recently traded ...
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Investing in industry leaders tends to work well for investors over time. But in any industry, upstart companies may work to build themselves up into a leader over time. Finding those growth plays can lead to great investment opportunities. That’s true for sectors that have a low barrier for entry, and where a competitor has the ability to create some big differentiation. These companies can likely see years of growth as they compete to become the industry’s largest. One potential example is ...
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Richard Agree, Chairman of Agree Realty (ADC), recently bought 10,500 shares. The buy increased his stake by 2 percent, and came to a total cost of $656,985. That’s the first insider buy of the year. 2023 saw over two dozen insider buys, including a buy from Richard Agree valued at over $1.1 million. Company directors and executives alike picked up shares last year. And there were no insider sales. Overall, Agree Realty insiders own 1.6 percent of shares. The retail-oriented real estate ...
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