Unusual Options Activity: United States Steel (X)

Metal producer United States Steel (X) is up nearly 48 percent over the past year, far beating the overall market. One trader is betting on shares to move higher in the next month. That’s based on the November 24 $33 calls. With 31 days until expiration, 10,313 contracts traded compared to a prior open interest of 534, for a 19-fold rise in volume on the trade. The buyer of the calls paid $1.15. Shares recently traded for just under $32, so ...
Read More
|

Uncertain Times or Not, Cash Flow Matters

Investors tend to focus on earnings and sales. But cash flow is also a critical component of analyzing a company. It shows how money comes in as revenue, is spent on goods and services a company needs to run, and how the remainder ends up on the balance sheet. A company with strong cash flows has enough money coming out at the end to pay a dividend to shareholders, or buy back shares, after investing in maintaining the company’s growth. This earnings ...
Read More
|

Insider Activity Report: John Wiley & Sons (WLY)

David Dobson, a director at John Wiley & Sons (WLY), recently bought 5,081 shares. The buy increased his stake by 64 percent, and came to a total cost of $152,357. Dobson was the most recent insider buyer with a 3,000 share pickup back in June. That buy increased his position by over 60 percent, and cost just under $95,000. Otherwise, the year has seen some small sales from company executives Overall, company insiders own 9.3 percent of shares. The publishing and education ...
Read More
|

Unusual Options Activity: Taiwan Semiconductor (TSM)

Semiconductor producer Taiwan Semiconductor (TSM) is up 41 percent over the past year, and held up well amid last week’s market selloff. One trader sees further upside ahead. That’s based on the February 16, 2024 $80 calls. With 116 days until expiration, 25,019 contracts traded compared to a prior open interest of 157, for a massive 159-fold rise in volume on the trade. The buyer of the calls paid $15.75 to make the bullish bet Shares recently traded for about $93, making ...
Read More
|

In Uncertain Markets, Quality Stocks Hold Up Best

Markets are still setting up for a year-end rally. But the selloff of the past month has taken many great companies far lower. While tech stocks have been hit the hardest, consumer goods companies have also seen heavy selling as they compete with the rising yields on bonds. That means investors may have a great opportunity to buy shares of defensive companies now, ahead of both a year-end rally and a likely move lower for interest rates later in 2024. Consumer goods ...
Read More
|

Insider Activity Report: Lamb Westin (LW)

William Jurgensen, a director at Lamb Westin (LW), recently bought 3,000 shares. The buy increased his stake by 2 percent, and came to a total cost just over $253,000. This is the first insider buy at the company in the past two years. Otherwise, company officers have been periodic sellers of shares, with the last sale occurring in August when shares traded nearly $20 higher from the current price. Overall, company insiders own 0.4 percent of shares. The frozen potato producer is ...
Read More
|

Unusual Options Activity: Marvell Technology (MRVL)

Semiconductor designer Marvell Technology (MRVL) is up 40 percent in the past year, returning more than double the S&P 500. One trader sees shares trending higher in the next two weeks. That’s based on the November 3 $53 calls, With 14 days until expiration, 5,037 contracts traded compared to a prior open interest of 109, for a 46-fold rise in volume on the trade. The buyer of the calls paid $1.15 to make the bullish bet. Shares recently traded for about $51.50, ...
Read More
|

Invest Where Other Companies See Value

One way to find market-beating trades is to look at companies that have suitors. A company that receives an unsolicited buyout offer can get a sense of what their shares would be worth if they were taken over. If the company rejects the offer, it may be a sign that they see even more value to their shares. That could lead to a higher offer, or a bid from a third company that sees an opportunity. Such a move is underway in ...
Read More
|