Trading Tips Blog

Shares of real estate analytics company Zillow Group (Z) are down 61 percent over the past year, with shares dropping well ahead of the current slowdown in the housing market. One trader sees a further drop ahead. That’s based on the October $40 puts. With 32 days until expiration, 6,502 contracts trade compared to a prior open interest of 173, for a 38-fold rise in volume on the trade. The buyer of the puts paid $5.48 to make the bet. Shares of ...
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When an industry is new, it may result in dozens or even hundreds of companies creating a product or service. As it matures, an industry will tend to consolidate into just a handful of players. The classic example of this is the automotive industry, where a number of brands either went bankrupt, or were absorbed into what are now known as the “big three.” Other industries are consolidating now. Finding the best values out there can mean getting into companies poised to ...
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Kelcy Warren, Executive Chairman at Energy Transfer LP (ET), recently picked up 2,428,727 shares. The buy increased his holdings by 0.9 percent, and came to a total price of $29.42 million. The Chairman has been a regular and extensive buyer of shares over the past few years, as have other C-suite executives, including the company CFO back in August. Over the past three years, insiders have almost exclusively been buyers. Overall, insiders at the company own 19.8 percent of shares. The oil ...
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Shares of chipmaker Intel (INTC) have struggled in the past year, with shares down nearly 47 percent. One trader sees the possibility for a further drop in shares in the coming months. That’s based on the March 2023 $20 puts. With 182 days until expiration, 4,227 contracts traded compared to a prior open interest of 217, for a 19-fold rise in volume on the trade. The buyer of the puts paid $0.60 to get in. The stock recently traded close to $29, ...
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Many companies have been hit hard by the pandemic as they’ve failed to pivot to business strategies better suited to events. However, companies that have made the pivot have been faring better. Some are more profitable as a result, while some are still building out the infrastructure to succeed. That’s leading to a number of companies showing growth now, or in future quarters, that may be being discounted by today’s fearful markets… creating a solid long-term buying opportunity. One company still in ...
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Tamara Gustavson, a director at American Homes 4 Rent (AMH), recently bought 422,203 shares. The buy increased her holdings by just over 2 percent, and came to a total price of $15.4 million. This is the director’s second largest buy of the year, following a 755,000-share pickup back in May, at a cost of just under $21 million. Over the past year, insider buying and selling has been about matched, with sellers having an edge going back further. Overall, company insiders ...
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Shares of gold producer Agnico Eagle Mines (AEM) have been volatile with gold prices in the past year. They’re now down 20 percent. And one trader sees the potential for a further decline in the coming weeks. That’s based on the October $35 puts. With 36 days until expiration, 4,011 contracts traded compared to a prior open interest of 250, for a 16-fold rise in volume on the trade. The buyer of the puts paid $3.50 to get in. Shares recently ...
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Some companies are simple, offering only one product or service. Others have many parts. And in bear markets, complicated companies may end up trading for less than the sum of their parts. That can attract value investors, as well as activist investors. Investors who can determine the true value of a company with a large number of different moving parts can potentially see big returns when there’s a divestment, successful activist investment, or even just a market turnaround. One company that may ...
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