Trading Tips Blog

Shares of cosmetic retailer Sally Beauty Holdings (SBH) have lost nearly 42 percent in the last year. One trader sees a further drop in the weeks ahead. That’s based on the January $10 puts. With 36 days until expiration, 7,502 contracts traded compared to a prior open interest of 349, for a 22-fold rise in volume on the trade. The buyer of the puts paid $0.20 to make the bearish bet. Shares recently traded for about $12.00, so they’d need to lose ...
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A great company is one that comes to dominate its market. Some industries may have an oligopoly, with a few big players dividing the space up somewhat evenly. Others may have one or two big players that dominate the market. Either way, when there’s a bear market, these industry leaders will sell off with other stocks. And short-term hits to profitability can lead to enough fear to make for a compelling value moving forward, particularly for patient investors. Such a case is ...
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Edie Ames, a director at Cheesecake Factory (CAKE), recently added 4,000 shares. The buy increased his holdings by 47 percent, and came to a total cost just over $129,000. Insiders have previously been buyers going back to last August, all from company directors. Going further back, there have been some insider sales by company executives in 2021, at prices about 50 percent higher than where the stock trade today. Overall, company insiders own about 7.2 percent of the restaurant chain. Revenue is ...
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Shares of media conglomerate Paramount Global (PARA) have struggled in the past year, with a 37 percent drop in shares. One trader sees a further decline ahead. That’s based on the February 2023 $20 put. With 65 days until expiration, 12,703 contracts traded compared to a prior open interest of 274, for a 36-fold rise in volume on the trade. The buyer of the puts paid $2.05 to make the bearish bet. The stock recently traded just under $20, making this an ...
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Investors tend to spend bull markets looking for opportunities in high-growth areas. But the economy isn’t always moving at full blast. For slower times, it may be prudent to focus on businesses that aren’t as cyclical, opting instead for companies more likely to be recession resistant. There are many sectors that fit the bill. Some are heavily regulated like utilities and telecoms. Others are more open, such as consumer goods. One niche of the consumer goods space is pet supplies. There’s a ...
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Albert Behler, President and CEO at Paramount Group (PGRE), recently added 50,000 shares. The buy increased his stake by 38 percent, an came to a total cost just under $288,000. He was joined by a director who bought 20,000 shares on the same day, paying just over $114,000. These two buys constitute the only insider trades since late 2020. The last insider sale at the company occurred back in 2019. Overall, insiders at the office REIT own about 15.5 percent of ...
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Shares of tech giant Microsoft (MSFT) have underperformed the market this year, with a 27 percent drop. One trader sees a rebound in the next month. That’s based on the January $265 calls. With 31 days until expiration, 4,094 contracts traded compared to a prior open interest of 191, for a 21-fold rise in volume on the trade. The buyer of the calls paid $2.93 to get in. Shares recently went for about $246, so they would need to rise about ...
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The stock market’s love of mergers and acquisitions has slowed in the past year, amid rising interest rates and declining stock prices. But there have been a few deals announced. Mergers can make companies bigger overall by providing an immediate and established source of revenue. Some deals will end up garnering regulatory scrutiny. Regulators want to ensure that a company doesn’t come to dominate the market it’s in via acquisitions. The FTC has come out against Microsoft’s (MSFT) proposed acquisition of ...
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