Unusual Options Activity: Bank of America (BAC)

Shares of financial giant Bank of America (BAC) are down 10 percent over the past year. One trader sees the potential for the stock to continue its recent rally into 2023. That’s based on the February $43 calls. With 182 days until expiration, 3,632 contracts traded compared to a prior open interest of 138, for a 26-fold rise in volume on the trade. The buyer of the calls paid $0.83 to make the bullish bet. Shares recently traded around $36.50, so ...
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In Uncertain Times, Invest Where Consumers Are Going

There’s nothing shocking in admitting that consumer spending drives the economy. And with uncertain and inflation high, it’s also no surprise that consumers are trending with lower-cost goods and services, foregoing higher-end ones. That’s been somewhat apparent this earnings season, as high-end retailers have struggled more than big-box stores that cater to a cost-conscious clientele. With these companies now reporting earnings, there’s a sigh of relief as things haven’t been as bad as feared. The poster child for those fears has been ...
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Insider Trading Report: Six Flags Entertainment (SIX)

Rehan Jaffer, a major holder at Six Flags Entertainment (SIX), recently added 525,000 shares. The buy increased his holdings by 5.5 percent, and came to a total price of $12.5 million. He was joined by company director Arik Ruchim, who also bought 525,000 shares for about the same amount on the same day. The two major holders were last big buyers of shares back in May. The company CFO has also been a modest buyer in the past few months. Overall, Read More
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Unusual Options Activity: Carvana (CVNA)

Shares of ecommerce vehicle sales platform Carvana (CVNA) have lost 85 percent of their value in the past year. One trader is betting that the company will continue to slide lower. That’s based on the October $40 puts. With 64 days until expiration, 20,786 contracts traded compared to a prior open interest of 458, for a 45-fold surge in volume on the option. The buyer of the puts paid $4.05 to make the bet. Shares recently traded for around $55 per share, ...
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Find the New Leaders in a Shifting Industry

Some industries tend to stay the same over time. That can bode well for investors, provided that industry has already consolidated into a few big players. That can be seen with companies like consumer goods. For industries that continue to face new innovations, however, leadership can change in time. Investors who look beyond the current leaders and look to those becoming new leaders stand to make an outsized return as that trend plays out. One industry seeing a shift in leadership is ...
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Insider Trading Report: DISH Network Corp (DISH)

James Defranco, a director at DISH Network Corp (DISH), recently picked up 35,260 shares. The buy increased his holdings by 2.1 percent, and came to a total price of $664,700. This follows up on a prior buy from the director this month, for 4,307 shares valued at just over $80,000. And the director picked up 1,250,000 shares back in May, at a cost of just over $24 million. Going further back, company insiders were more likely to be sellers. Overall, company ...
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Unusual Options Activity: Uber (UBER)

Shares of ride share company Uber (UBER) have rebounded strongly off their annual lows in the past few weeks. One trader sees the possibility for some downside ahead. That’s based on the September 23 $27 put. With 37 days until expiration, 4,491 contracts traded compared to a prior open interest of 103, for a 44-fold rise in volume on the trade. The buyer of the puts paid $0.44 to bet on a further downside in shares. The stock last traded near $32.50, ...
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Build Your List of “Catalyst” Stocks Now

The market has recovered nearly half of its losses from the bottom – and in just the span of a few short weeks. That may not mean we’re out of the woods yet. But investors looking for stocks that could have a large move from here need to look for a company with a catalyst. That could be a new product or service, or simply a company that benefits from a macroeconomic trend like lower inflation rates. Following these cyclical companies at ...
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