Trading Tips Blog

Bet on shares heading higher. Shares of Cloudera (CLDR) may be heading higher between now and February, based on a surge of the $5 call options there. On Thursday, over 8,200 of the calls traded against a prior open interest of 123—a 67-fold surge in volume. With shares trading at $5.50, the options are also about 10 percent in-the-money, meaning they should move penny-for-penny, less the decline in the time premium. Cloudera provides data analytic and management products, operating both a subscription and ...
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Major owner increases stake in regional bank. On Tuesday, James Filler bought just over 2,500 shares of Century Bancorp (CNBKA). He already owns more than 10 percent of shares. The buy, with a total purchase price of $219,000, increases his total position to 702,919 shares, and represents a 0.36 percent increase in his total holdings. Like many other insiders in recent days, Filler sees solid opportunities in companies where he already has a large stake. Century Bancorp is a bank holding company for ...
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Bet on moderate decline by January. Shares of Shake Shack (SHAK) have been volatile over the years. At least one trader is betting on a big move in shares again—with a decline in mind. On Tuesday, over 934 contracts traded on the January 2020 $65.00 put options. With shares trading around $74.50, that’s a bet that shares will decline over 13 percent between now and January. Shake Shack currently operates 208 restaurants which it calls Shacks. The company sells burgers, hot dogs, fries, ...
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Major fund holder bumps up stake. On Monday, the Abdiel Qualified Master Fund bought 137,515 shares of Fastly, Inc. (FSLY). With a total cost of nearly $2.8 million, this represented a 3 percent increase in the fund’s stake. The fund, already an owner of more than 10 percent of the company’s shares, has over 4.78 million shares of Fastly in its portfolio. Fastly operates an edge cloud platform for processing, securing, and serving its customer’s applications. The edge cloud is a type of ...
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Multiple options trades imply shares will decline again. Multiple bets are being made that shares of Tesla Motors (TSLA) will drop again in the coming weeks. On Monday, over 10,000 contracts traded on an August $60.00 put—a 75 percent discount from where shares trade around $240. Another large trade occurred on the October $215 put, which implies a 10 percent discount between now and October. The August put, trading at $0.04, or $4 per contract, is a very cheap bet likely to expire ...
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CEO makes million-dollar buy. On Thursday, G-III Apparel Group CEO Morris Goldfarb bought 40,000 shares of his own company. Besides increasing his total stake to over 3.9 million shares, the $26.47 price per share means he spent over $1.05 million picking up shares of the firm. This follows on a previous purchase by Goldfarb back on June 13th. Then, he picked up 40,479 shares, paying $1.02 million. G-III Apparel designs, sources, and markets apparel for men and women. It operates in wholesale and ...
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Big bet auto parts supplier will decline. A sizeable bet is being made on a double-digit drop in shares of Tenneco (TEN) between now and January. On Friday, nearly 3,000 contracts traded on the $9.00 put option on the company. With shares at $9.50, the option is a bet that shares will decline. Based on the price of the option around $1.45, shares will need to trade around $7.50 by January for the option to be worth at least as much as ...
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Big bet retail chain will continue dropping after earnings miss. Shares of retail outlet Bed Bath & Beyond (BBBY) dropped by over 8 percent on Thursday, following poor earnings and poor guidance. But traders are betting on even further weakness in shares in the coming months. One option was the November $11 puts on the company, which saw over 10,000 shares trade against a prior volume of 1,100. With shares now under $10, it’s an in-the-money trade that should move penny-for-penny with ...
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