Trading Tips Blog

Office workflow software giant Workday (WDAY) is up 6% over the past year, far underperforming the overall market. Shares have been trending lower since late February, and one trader sees that trend continuing in the coming months. That’s based on the July $210 puts. With 51 days until expiration, 11,397 contracts traded compared to a prior open interest of 343, for a 33-fold rise in volume on the trade. The buyer of the puts paid $3.85 to make the bearish bet. Workday ...
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In any industry, there’s one leader. Even if there are two big players that seemingly duke it out, one of them is still king of the hill. In the tech space, today’s leaders can become tomorrow’s laggards. That also means that when a leading stock is soaring, smaller players may be more attractive. Those smaller players could win from a “catch-up” trade when the leader’s momentum slows down. Right now, Advanced Micro Devices (AMD) could be the catch-up trade against industry giant ...
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Frank Svoboda, CEO of Globe Life (GL), recently bought 5,000 shares across two days. The buys increased his position by 4%, and came to a total cost just over $420,000. He was joined by the company’s Co-Chairman of the Board, who bought 3,000 shares in total, at a cost of over $250,000. And the company CFO recently picked up $42,214 worth of shares. Going back to 2023, insiders were more likely to be sellers of shares rather than buyers. Overall, Read More

Digital payment system operator Block (SQ) is up 14% over the past year, far lagging the overall market, and now in a downtrend. One trader sees shares continuing lower in the months ahead. That’s based on the August $62.50 puts. With 80 days until expiration, 7,482 contracts traded compared to a prior open interest of 119, for a 63-fold rise in volume on the trade. The buyer of the puts paid $3.85 to make the bearish bet. Block shares recently traded for ...
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Defensive stocks tend to hold up well in just about any market. This recent market rally has been an exception. Tech stocks have handily beaten other sectors. And high interest rates have made dividend-paying defensive stocks look less attractive. But the businesses behind those stocks aren’t playing defense. By creating new products and expanding operations, they can continue to grow, and provide investors with great long-term returns. Buying these companies today could fare well when the tech trade slows down. One such ...
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Gerald Johnson, a director at Caterpillar (CAT), recently bought 100 shares. The buy increased his position by 5%, and came to a total cost of $35,640. Johnson is the second director to buy this month, following a 500 share pickup from another director. There has been a large sale from a company Group President in the past month, amounting to a $7.8 million sale. Other executives have also been sizeable sellers in the past year, largely following the exercise of stock ...
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Shares of pizza chain Papa John’s International (PZZA) are down 33% over the past year. One trader is betting on a further decline into the autumn. That’s based on the October $57.50 puts. With 144 days until expiration, 21,310 contracts traded compared to a prior open interest of 111, for a 192-fold rise in volume on the trade. The buyer of the puts paid $11.12 to make the bearish bet. Papa John’s shares recently traded for about $47.50, meaning the puts are ...
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Consumer spending has been declining. That bodes poorly for most retail stocks from here. However, not all retail stocks are created equal. Some retailers can thrive in a challenging environment. Specifically, companies that cater to cost-conscious consumers. Even with tight budgets, those looking for a deal and seeing price tags with steep discounts on them will likely continue to flock to companies that continue to have massive deals. One company that could hold up well amid slowing consumer spending is TJX (TJX) ...
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