Trading Tips Blog

Mineral miner Rio Tinto Group (RIO) has lagged the market, losing 10 percent over the past year and sliding in recent weeks. However, one trader sees the potential for a rebound in the coming months. That’s based on the June $65 calls. With 153 days until expiration, 8,337 contracts traded compared to a prior open interest of 122, for a 68-fold rise in volume on the trade. The buyer of the calls paid $5.70 to make the bullish bet. Rio Tinto shares ...
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Big banks have kicked off earnings season. And there’s been a mixed result overall. Most banks are taking a more conservative approach, as benefits the Fed’s “higher for longer” strategy on interest rates. However, while bank lending activity is down, the market’s strong return is helping banks that have a large wealth management division to make better profits right now. That’s a trend that could likely continue. It’s a trend that bodes well for Wall Street investment bank Goldman Sachs (GS). Overall ...
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Paul Livek, a director at Red Violet (RDVT), recently added 4,900 shares. The buy increased his stake by 115 percent, and came to a total cost of $90,174. This is the first insider buy since last May, when a different director bought 2,000 shares, paying just under $49,000 to increase her stake by about 70 percent. Otherwise, a major holder sold 10,000 shares, netting about $250,000 for doing so. Overall, Red Violet insiders own about 33.7 percent of shares. The identity ...
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Uranium producer Denison Mines (DNN) handily beat the market over the past year, gaining 52 percent. One trader sees shares trending higher in the months ahead. That’s based on the July $2.50 calls. With 182 days until expiration, 28,597 contracts traded compared to a prior open interest of 242, for a massive 118-fold rise in volume on the option trade. The buyer of the calls paid $0.25 to make the bullish bet. Denison shares recently traded for about $2, so the stock ...
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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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