Unusual Options Activity: Marvell Technology (MRVL)

Shares of semiconductor company Marvell Technology (MRVL) have lost over a quarter of their value in the past year. One trader sees a potential rebound ahead in the coming months. That’s based on the September $42.50 calls. With 72 days until expiration, 18,092 contracts traded compared to a prior open interest of 154, for a 117-fold jump in volume on the trade. The buyer of the calls paid $4.85 to get in. The buy comes as shares have hit a 52-week low ...
Read More
|

Poor Company Outlooks Usually Mark a Time to Buy, Not Sell

Analysts tend to run behind market events. Companies tend to see upgrades after a big move higher. And when a stock is falling, the downgrades will come in too late to protect investors from most of the drop. The same is true with companies reporting their outlook. When things look good, companies tend to overestimate their future returns. When markets sour, they tend to significantly underrate their future returns. Case in point? Micron Technology (MU). The memory maker is reporting a ...
Read More
|

Insider Trading Report: Thor Industries (THO)

Peter Orthwein, a director at Thor Industries (THO), recently added 3,000 shares. The buy increased his stake by 0.3 percent, and came to a total purchase price of $228,000. This is the second buy from the director in the past month. Other directors have also been buyers of shares in recent months. Going further back, company executives were sellers of shares at higher prices in the past year. Overall, insiders own about 4.5 percent of shares. The recreational vehicle company has seen ...
Read More
|

Unusual Options Activity: Bank of America (BAC)

Shares of financial giant Bank of America (BAC) have been in a downtrend for the past six months. One trader sees the potential for a rebound in the next two years. That’s based on the June 2024 $32 calls. With 717 days until expiration, 8,055 contracts traded compared to a prior open interest of 154, for a 52-fold rise in volume on the trade. The buyer of the calls paid $5.13 to make the trade. Shares recently traded for about $31, so ...
Read More
|

These “First-Half” Market Winners May Continue Trending Favorably for Longer

The stock market just had its worst start to a year since 1970. That trend looks likely to continue, as interest rates need to rise further to slow down inflation. Most companies are down, with some tech stocks notching losses of as much as 70 percent so far this year. But a few companies have managed to hold steady, or even deliver a slight gain. They may continue to be relative leaders in this market for a few more months yet. One ...
Read More
|

Insider Trading Report: RE/MAX Holdings (RMAX)

Magnolia Capital Fund, LP, a major owner of RE/MAX Holdings (RMAX), recently added to their stake with a 33,102 share buy. The purchase increased their stake by about 1.7 percent, and came to a total cost just over $811,000. This is the fund’s second buy in the past month, following a 40,239 share buy for just under $883,000 earlier in June. These are the sole insider buys in the past three years. Company insiders have been modest sellers otherwise over the ...
Read More
|

Unusual Options Activity: Clarus Corporation (CLAR)

Shares of outdoor equipment producer Clarus Corporation (CLAR) have been in a downtrend for the past year. One trader sees the possibility for a rebound in shares in the next few months. That’s based on the February $20 calls. With 228 days until expiration, 15,059 contracts traded compared to a prior open interest of 227, for a 66-fold rise in volume on the trade. The buyer of the calls paid $4.35 to get into the position. Shares recently traded for about $19, ...
Read More
|

Grab Industry Dominating Companies When the Market Dislikes Them

Some industries are more concentrated than others. While hundreds of bank stocks flourish, for instance, there are only a handful of companies with the overwhelming share of the soft drink market. Markets with an oligopoly, or even a duopoly, tend to become commonplace after an industry consolidates. That also makes those stocks solid investment choices. While a mature and slow-growth industry may not seem like an exciting play, having just a few players keeps those companies profitable. One such area is in ...
Read More
|