Trading Tips Blog

Earnings season can be full of surprises. A company can miss on earnings, but still do better than expected. As a result, shares may end up rallying! The opposite is quite common too. A company can report fantastic earnings and growth, yet not meet expectations. That tends to result in a selloff in shares. In that case, however, there’s a buying opportunity as the company is clearly growing over time. That seems to be the case with
Zoom Technologies (ZM). The company reported ...
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International mining giant
Vale (VALE) has fared well this year as a recovering global economy has increased demand for raw commodities. One trader sees this playing out even further. The March 2021 $18 calls just saw 17,700 contracts trade against a prior open interest of 788, for a 22-fold rise in volume. The trade, expiring in 107 days, is that shares will move nearly $3 per share higher, or about 17 percent. The trader paid $0.51. Based in Brazil, Vale is best known ...
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Vesa Equity Investment, a major holder in
Foot Locker (FL), recently added to their stake. The fund bought 509,575 shares of the company, increasing their holdings by 4.75 percent. The purchase price for the stake came to just under $19.7 million. While the fund has been buying, company insiders have generally been sellers over the past few years. Sales have occurred at prices as much as 37 percent higher than where shares currently trade. Overall, insiders own 11.6 percent of outstanding shares. The ...
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Korea Investment Corp., the sovereign wealth fund for South Korea, recently made some changes in its stock filings. It lighted up on many well-known tech names such as Apple, Alibaba, and Intel. Instead, the fund decided to use its capital to buy shares of an automotive giant instead. It’s not an electric vehicle play, at least, not entirely. That’s because the new buy is in
General Motors (GM). There are many reasons for the buy now, even with shares near a 52-week ...
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International cement giant
Cemex (CX) has seen shares rally in recent months. A return to normal economic activity bodes well for construction. One trader sees the trend continuing even higher. That’s based on the April 2021 $5.50 calls. Expiring in 136 days, the options saw over 12,950 contracts trade. That’s a staggering 105-fold rise in volume from the prior open interest of 105. With shares at $4.60, the stock would need to rise 19.6 percent for the option to move in-the-money. The trader ...
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Sardar Biglari, Chairman and CEO of
Biglari Holdings (BH), recently bought 23,613 additional shares. The buy increased his holdings by just under 2 percent. The buy totaled just under $2.6 million. Biglari has been a buyer of shares over the past year at prices as much as 30 percent below where shares trade today. Other insiders have also picked up smaller stakes. There have been no insider sales in the last three years. Biglari Holdings is a conglomerate that owns a number ...
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Traders can make a bundle buying companies with a high amount of short interest. That’s because once a stock’s price moves higher, short-sellers need to buy shares to cover their position. If shares can’t be found, and traders get desperate enough, the squeeze is on! One potential squeeze play is in a mall retailer that has 45 percent of its float (available shares) held by short sellers right now. It also reported earnings just strong enough to send shares moving higher, which ...
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Big data giant
Palantir (PLTR), which recently went public, traded sideways for a few weeks before starting a monster move higher. At least one trader sees shares continuing to head even higher from here. That’s based on the May 2021 $40 calls. Over 12,100 contracts traded against a prior open interest of 362. That’s a 33-fold rise in volume, and it came in as shares were up double-digits for yet another day. The trader paid about $7.10 for the contracts. With shares trading ...
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