Trading Tips Blog

Shares of aluminum producer Alcoa Corporation (AA) are down about in-line with the S&P 500 over the past year. One trader is betting that the company will move far lower in the coming weeks. That’s based on the November $25 puts. With 59 days until expiration, 8,617 contracts traded compared to a prior open interest of 166, for a 32-fold rise in volume on the trade. The buyer of the puts paid $0.32 to make the bet. Shares recently traded just ...
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Inflation can be an insidious force, making investing a challenge. That’s because there are some areas where customers have to spend more due to inflation, whether they like it or not. Other businesses are more elastic, so higher prices can lead to a big drop in volume. Companies that have strong real demand now can likely perform well in the future as inflation starts to wane. The trick is in finding the right trend to track amid today’s high inflation. One trend ...
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Arik Ruchim, a director and major owner of Six Flags Entertainment (SIX), recently picked up 200,000 shares. The buy increased his holdings by 1.9 percent, and came to a total cost of just over $4.595 million. He was joined by another major owner, who also picked up 200,000 shares for the same price. Both of the major owners were buyers in August, with multiple buys each totaling over 1,000,000 shares. Other company executives including the CFO have also been buyers this ...
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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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