Unusual Options Activity: Zoom Communications (ZM)

While the pandemic lockdowns are all but over, at least one trader expects shares of Zoom Communications (ZM) to regain some of their recent decline. That’s based on the September $290 calls. Nearly 6,300 contracts traded against a prior open interest of 114, for a 55-fold jump in volume. The trade has 126 days to play out, and with shares right near $290, it’s an at-the-money trade. The buyer of the call paid about $36.15 to make the trade. With an at-the-money ...
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Long-Term Trends Bode Well for This Latest Tech

The rise of electric vehicles over the past few years has proven strong even with a global pandemic. Companies have sprouted up over the past year to take advantage of the trend. Any company that can offer a significant innovation is capable of grabbing a big market share for itself. But it also has to be able to scale up that technology to commercially-viable levels. One promising company is QuantumScape (QS). A recently-public company, they’re working on a new solid-state battery. The ...
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Insider Trading Report: Activision Blizzard (ATVI)

Peter Nolan, a director at Activision Blizzard (ATVI), recently bought 20,000 more shares. The buy increased his holdings by nearly 12 percent, and came to a total purchase price of $1.9 million. This marks the first insider buy of 2021. Insiders tend to be sellers of shares, at the C-suite level, suggesting a large amount of stock options being exercised. However, insiders have been known to buy on dips, including large insider buys last year at the start of the ...
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Unusual Options Activity: Vornado Realty Trust (VNO)

Shares of office real estate investment trust Vornado Realty Trust (VNO) are down over 50 percent from their peak price in 2015. While recovering from last year’s work-from-home trends, one trader sees a decline in shares in the coming months. That’s based on the September $40 puts. With 127 days until expiration, over 10,535 contracts traded against a prior open interest of 175, for a 60-fold rise in volume. With shares around $46, the option would move in-the-money on a 15 percent ...
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Pipeline Shutdown Puts Cybersecurity in the Spotlight

Colonial Pipeline shut down on Friday following a ransomware attack. The pipeline moves about 45% of the fuel used in the Northeast from facilities in Texas. The company has a tentative date to restore operations by Friday, leaving the pipeline off for a whole week. The impact is raising gasoline prices and the possibility of shortages in some areas, but also bringing an eye once again towards cybersecurity companies. As the first cyberattack in the energy sector specifically, it’s clear that ...
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Unusual Options Activity: Micron Technology (MU)

Shares of semiconductor company Micron Technology (MU) have been caught up in the recent tech selloff. One trader sees the potential for a bounce higher in the near future. That’s based on the August $82.50 calls. Over 12,730 contracts traded, a 35-fold rise in volume from the prior open interest of 360 contracts. The buyer of the option paid $6.25 to make the trade, which expires in 100 days. With shares of Micron selling off to around $80, the option will move ...
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Insider Trading Report: Lumber Liquidators (LL)

Joseph Nowicki, a director at Lumber Liquidators (LL), recently bought 6,274 shares. The buy increased his holdings by 258 percent, and came to a total purchase price of $150,000. This is the first insider buy since last August. Since 2019, company insiders have been exclusively buyers. This is the first purchase from a director since 2014. Overall, company insiders own nearly 5 percent of the company. Shares of the home improvement retail chain are up 217 percent in the past year, ...
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Don’t Ignore the Power of 5G Amid the Tech Slump

While tech stocks have been out of favor the past few months, companies continue to innovate and roll out new products. Some are mere ideas, others are on the cusp of massive profitability. The 5G network is in the second category. It’s been discussed for years, and started slowly rolling out shortly before the pandemic started. With an end to the pandemic, it’s likely to speed up, and one company stands to dominate no matter how the sector unfolds. That company is ...
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