Trading Tips Blog

Shares of media giant Paramount Global (PARA) have shed one-third of their value in the past year. One trader sees shares moving higher in the weeks ahead. That’s based on the February 17 $21.50 call. With 22 days until expiration, 3,066 contracts traded compared to a prior open interest of 114, for a 27-fold rise in volume on the trade. The buyer of the calls paid $0.97 to make the trade. Shares recently traded just under $21, so they’d need to rise ...
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Investors pay a high price for certainty. By the time they pile into a “sure thing” investment, the price is already sky high. Meanwhile, when there’s a lot of fear in the market, great companies and opportunities can be had for a relative bargain. Today, investors have far more bargain picks than at any time in the past few years. And buying companies moving to streamline costs today will play out doubly well from higher profits and higher share prices. While tech ...
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Mellody Hobson, a director at JPMorgan Chase (JPM), recently added 375 shares. The purchase cost the director $50,448, and increased her stake by less than 1 percent. Hobson was the last buyer of shares at the company one year prior, with a 670 shares pickup for just over $100,000. In the past year, company insiders have largely been sellers of shares, both from existing holdings and from the exercise of options. Overall, company insiders own 0.9 percent of shares. The money center ...
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Shares of coffee chain Starbucks (SBUX) have bucked the market downtrend with a 7 percent gain over the past year. One trader sees that trend continuing in the coming months. That’s based on the April $115 calls. With 85 days until expiration, 121,998 contracts traded compared to a prior open interest of 2,448, for a 50-fold jump in volume on the trade. The buyer of the calls paid $2.11 to make the bullish bet. Shares recently traded for about $106, so ...
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One simple investment strategy is to follow a successful investor’s coattails. Many will follow billionaire investors such as Warren Buffett or Carl Icahn as they enter into a new stock position. A few will even own the stocks that are owned or managed by the investors. Another way is to look at asset management companies. They may not have a well-known billionaire running the helm, but they tend to grow their assets over time -- with big profit margins along the ...
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Shekhar Priyadarshi, CFO at Keurig Dr Pepper (KDP), recently added 10,000 shares. The buy set the CFO back $350,000 and is an initial stake for this particular insider. This is the first buy at the beverage company since the Chief Supply Chain Officer made a number of buys back in August and September. Since then, the company CEO has been a seller of shares, as well as a company director. Overall, company insiders own 37.4 percent of shares. The beverage company has ...
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Shares of offshore oil and gas services company Transocean (RIG) are up 83 percent over the past year. One trader sees a pullback in the next two months. That’s based on the March $5 puts. With 51 days until expiration, 13,472 contracts traded compared to a prior open interest of 108, for a 91-fold jump in volume on the trade. The buyer of the puts paid $0.22 to make the bearish bet. Shares recently traded for $6, so the stock would need ...
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Some stocks tend to hold up well in any market. One area is consumer goods companies. These firms may make humdrum products like prepackaged food, soap, shampoo or toilet paper, but those products never fall out of demand. When markets turn lower, these companies may sag as well. And that can provide patient, long-term investors with a decent entry point that they otherwise might not have made. Such opportunities are appearing today… That’s especially true as companies are being hit with higher ...
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