Unusual Options Activity: Snap Inc (SNAP)

Social media company Snap Inc (SNAP) has seen shares drop 70 percent in the past year. One trader is betting that shares have further to fall in the next six months. That’s based on the September $6 puts. With 176 days until expiration, 11,418 contracts traded compared to a prior open interest of 246, for a 46-fold rise in volume on the trade. The buyer of the puts paid $0.27 to make the bearish bet. Shares recently went for about $11.50, so ...
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Keep Buying Strong Brands in Uncertain Times

While the next market-moving news may not be positive, over time, investing in the stock market is more rewarding than betting against it. And with so many companies knocked down last year and into the current banking fears, investors who start buying shares of companies with strong brands could see big profits ahead. Best of all, brands can include a variety of industries. And chances are that brand is a household name, which brings familiarity in uncertain times. One of the world’s ...
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Insider Trading Report: Walmart (WMT)

Randall Stephenson, a director at Walmart (WMT), recently purchased 7,245 shares. The buy increased his holdings by 58 percent, and came to a cost of $1,000,168. This marks the first insider buy at the company in the past two years. Otherwise, insiders have been regular sellers of shares. Those sales have been dominated by members of the Walton family, who are still major holders of the stock, but a few company executives have sold as well. Overall, Walmart insiders still own Read More
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Unusual Options Activity: Analog Devices (ADI)

Semiconductor company Analog Devices (ADI) have been a strong performer in the past year, with a 13 percent gain, amid overall losses for the sector. One trader is betting on a reversion taking shares down in the coming days. That’s based on the March 31 $175 puts. With 9 days until expiration, 2,232 contracts traded compared to a prior open interest of 115, for a 19-fold rise in volume on the trade. The buyer of the puts paid $0.77. Shares recently traded ...
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Amid a Declining Market, This Space Looks Set to Move Higher

While the stock market has been down over the past year, some sectors look set for a move higher. One such space is in commodities. Inflation remains sticky, which tends to keep prices of hard assets from declining too much. Plus, for many commodities, the fundamentals look strong today. There’s high demand and potentially lower supply for a number of resources. A second year of the Russia/Ukraine conflict looks likely to keep the wheat market tight in particular. One estimate is that ...
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Insider Trading Report: Prospect Capital Corp (PSEC)

Kristin Van Dask, CFO at Prospect Capital Corp (PSEC) recently bought 6,000 shares. The buy increased her stake by 10 percent, and came to a total cost just over $41,200. She was also the most recent insider to buy, with a 4,250 share pickup back in November, paying nearly $32,000 . A company director has also been active over the past two years. There have been no insider sales over the past two years either. Overall, insiders at the business development company ...
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Unusual Options Activity: Electronic Arts (EA)

Video game design studio Electronic Arts (EA) dropped about 10 percent over the past year. One trader sees shares rebounding in the months ahead. That’s based on the September $125 calls. With 178 days until expiration, 1,307 contracts traded compared to a prior open interest of 106, for a 12-fold rise in volume on the trade. The buyer of the calls paid $4.65 to make the bullish bet. Shares recently traded for about $113, so the stock would need to rise $12, ...
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The Higher Margin Player in an Oligopoly Always Wins

Many industries consolidate over time into just a handful of players. These oligopolies can jockey for market share. Chances are one of the players will move towards higher-end consumers to differentiate, and others may shift to the lower end. Either way, the company that can sport the highest profit margin will typically be the best performer for shareholders over time. Higher profit margins provide more capital for reinvestment in the business, or for dividends or share buybacks for investors. In the credit ...
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