Cloudflare Soars in IPO

Company marks successful IPO. Shares of Cloudflare started trading on the New York Stock Exchange under the ticker NET. The company had an IPO price of $15 per share, but rallied about 20 percent to $18 per share in early trading. The company’s IPO is the biggest tech IPO in recent months, and raised $525 million for the company, which now trades with a market cap of $1.4 billion. Founded in 2009, Cloudflare operates a cloud platform delivering a variety of services to businesses worldwide, including software-as-a-service applications, Internet of Things devices, and other security and network needs. Action to take: While we ...
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Unusual Options Activity: CSX Corp. (CSX)

Bet on railroad firm getting back to 52-week high. The February 2020 $77.50 call options on CSX Corp. (CSX) saw 2,000 contracts trade, an 18-fold increase over the prior open interest of 114. With shares of the company around $72.21, the option will trade in-the-money if shares rise at least 7.3 percent between now and February. With a price of $2.53 per contract on average, the call buyer will need to see shares trade closer to $80 to make a profit come expiration. As the company’s 52-week high is right at $80 per share, the option looks dicey. CSX operates rail-based freight ...
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Three Good Investments From Negative Interest Rates

There are a lot of ways to make money in the market. But even if you find that rare company that can move ten-fold and provide one of the best profits of your lifetime, that will take time.Most investors get impatient. Trading Tips’ Andrew Packer explains why you should be looking at blue-chip bargains ...
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Jeff Gundlach: 75 Percent Chance Recession Hits in the Next Year

Billionaire money manager sees economy stalling before 2020 election. Speaking at an investment conference in London this week, billionaire money manager Jeff Gundlach of DoubleLine sees a 75 percent chance of a recession within the next year. That would put the economy in a recession right before the 2020 election, vastly increasing the odds of an uncertain outcome. Regarding the recent inversions on the yield curve, Gundlach, a fixed-income investor, stated that the watched metric is not the best indicator of a recession. Rather, the bigger fear is one seen in the markets lately, where the curve inverts before flipping back the ...
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Unusual Options Activity: New York Community Bancorp (NYCB)

October put buying suggests shares will remain weak. The October 18th $12 put options on New York Community Bancorp (NYCB) saw an unusual amount of trading volume with over 8,700 contracts trade against a prior open interest of 268, a 32-fold rise in volume. With shares around $13.30, the $12 put option will close in-the-money if shares fall more than 10 percent in the next few weeks, making a sizeable percentage decline. New York Community Bancorp is a regional bank headquartered in New York state, offering traditional banking services such as checking and savings accounts, mortgage and business loans, and other similar services. Action ...
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Insider Activity: Cars.com Inc (CARS)

CEO makes six-figure buy. Thomas Vetter, president and CEO at Cars.com (CARS), picked up 11,000 shares recently, increasing his total share stake to just under 270,000 shares, making for a 4.5 percent increase in his total holdings at the company. At a price of around $9.60 per share, the buy came out to just over $105,000, a sizeable amount considering the company’s $650 million market cap. Cars.com operates a digital marketplace bringing together buyers and sellers of cars. The company has over 5 million listings and serves over 20,000 dealer customers. Shares are down over 64 percent in the past year. Action to take: ...
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ECB Launches Stimulus Package

European Central Bank unveils latest push to move economy higher. The European Central Bank (ECB) unveiled a new round of quantitative easing (QE), starting at 20 billion pounds per month. The program, coming about after ECB head Mario Draghi stated that governments must also boost spending, gave markets a kick higher for the day. A key feature of the restarted program is even deeper negative interest rates for banks, a stick designed to get the banks lending more capital out to businesses in an effort to fuel the Eurozone’s economy. While the ECB left its key borrowing rate at zero, and the ...
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Unusual Options Activity: Vale (VALE)

Bet on rally in Brazilian ore play in next month. The October 4th $12.50 call options in Vale (VALE) saw heavy trading recently. With shares around $11.80, the option is a bet on shares moving another 6 percent higher in the next 22 trading days before expiration. Over 3,750 contracts on this option traded against a prior open position of 100, making for a 37-fold surge in volume on the trade. With a cost of just $0.16, or $16 per contract, it’s an inexpensive bet that could give the trader a lopsided return if shares move even higher. If Vale shares hit $13 ...
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