Trading Tips Blog

Shares of investment bank Morgan Stanley (MS) have slid nearly 15 percent in the past year. One trader is betting that shares will recover in the next 18 months. That’s based on the January 2024 $85 calls. With 554 days until expiration, 2,000 contracts traded hands at a 42-fold rise in volume on the trade. The buyer of the calls paid about $4.10 to get into the trade. Shares recently traded just under $77, so the stock would need to rise about ...
Read More

Some stocks are cyclical, moving up and down in a somewhat predictable manner. Other companies tend to have steadier returns over time, making for a reasonable investment for the long haul. Sometimes, however, a cyclical company can develop in a way that allows it to undergo a structural change as well. That’s where a new product or service creates substantial new value. It may create a new cycle, or simply break the pattern of trading in one. Traditional automotive companies are breaking ...
Read More

Maurice Milikin, Chief Supply Chain officer at Keurig Dr Pepper (KDP), recently picked up 12,979 shares. The buy doubled the executive’s position, and came to a total cost of just over $466,000. The officer made the first buy back in late June. Other company executives have been active this year on the buy side, with the company’s Chief Strategy Officer picking up nearly $2.4 million in shares back in May, and the company’s Chief Legal Officer buying nearly 15,000 shares so ...
Read More

Shares of residential construction company Toll Brothers Inc (TOL) have given up all of last year’s gains, and are even down 15 percent over the past year. One trader sees further downside ahead. That’s based on the January 2023 $30 put. With 193 days until expiration, 11,084 contracts traded compared to a prior open interest of 301, for a 38-fold rise in volume on the trade. The buyer of the puts paid $1.03 to bet on prices sinking lower. Shares recently ...
Read More

The stock market loves it when a company makes some kind of positive change. If a company announces a dividend or buyback program, shares will often rally heavily on the news. Another event that’s seen a jump in shares in recent years has been the announcement of a stock split. While it doesn’t change the total value of a company, it does change how many share investors have, and the price per share. And as long as the price is low, there’s ...
Read More

Mark Lipson, a director at Source Capital (SOR), recently added 1,325 shares. The buy increased his holdings by nearly 49 percent, and came to a total cost of just under $54,000. This comes after a company VP made three buys back in June, totaling just over 2,500 shares. Over the past three years, company insiders, including both executives and directors, have been modest buyers of shares, with only one insider sale in late 2019. Overall, insiders at the asset management company own ...
Read More

Shares of mining giant Freeport-McMoRan (FCX) are down 21 percent over the past year thanks to a slide in recent months. One trader sees the possibility for a rebound ahead in the coming months. That’s based on the February $33 calls. With 224 days until expiration, 10,047 contracts traded compared to a prior open interest of 101, for a 99-fold surge in volume on the option. The buyer of the calls paid $2.74 to get into the trade. Shares recently traded around ...
Read More

There are many investment strategies that best work in a market that’s moving in a direction, whether up or down. In sideways markets, other strategies, often related to income, tend to perform better. While the market is likely in a decline, but is prone to some strong rallies along the way, only a few strategies offer a solid prospective return. One such strategy is arbitrage. It’s best known for trying to find immediate price differences in an asset across markets. However, for ...
Read More