Trading Tips Blog

Coal producer Peabody Energy (BTU) has been roughly cut in half this year, amid a lackluster energy market. One trader sees further downside in the weeks ahead. That’s based on the June $11 puts. With 61 days until expiration, 5,549 contracts traded compared to a prior open interest of 160, for a 35-fold rise in volume on the trade. The buyer of the puts paid $0.92 to make the bullish bet. Peabody shares recently traded for about $12, so they would need ...
Read More About This

The souring stock market has created an environment where many stocks are sold off even if new developments don’t specifically impact them. While the high near-term uncertainty makes for a poor investing environment, it won’t always be this way. When markets do recover, great companies will trend higher. Companies that are in an oligopoly space with few competitors should fare even better. Investors who pick up shares of these companies during current fears can likely see market-beating returns. For instance, the airline ...
Read More About This

Liberty 77 Capital, a major holder of Lions Gate Entertainment (LGF), recently bought 1,018,107 shares. The buy increased the fund’s position by 10%, and came to a total cost of $6.98 million. The fund was a buyer a few days before for 2.6 million shares, a 37% increase in holdings at a cost of $17.8 million. Going further back, the fund has been a steady and consistent buyer of shares. Two company insiders were small sellers of shares over the past ...
Read More About This

Rare earth explorer and producer MP Materials (MP) has been on a tear, with shares continuing to hit new 52-week highs. One trader sees further upside in the weeks ahead. That’s based on the May $31 calls. With 28 days until expiration, 3,228 contracts traded compared to a prior open interest of 154, for a 21-fold rise in volume on the trade. The buyer of the calls paid $1.85 to make the bullish bet. MP Materials shares just traded right under $28, ...
Read More About This

Since the start of the year, health care has been a leading sector for the economy. It’s a defensive sector, and tends to perform well over time. What’s more, it tends to have some insulation from global trade, providing some safety amid the current tariff fears. As long as this sector continues to lead, investors can likely see reasonable returns on health care stocks. And it will likely provide more stability compared to other sectors getting whipsawed right now. In the health ...
Read More About This

Garth Graham, a director at Science Applications International (SAIC), recently bought 215 shares. The buy increased his stake by 3%, and came to a total cost of $25,101. The buy came a week after another company director bought 230 shares, increasing her position by 6%. And a company EVP also bought shares earlier this month. Going further back, both directors and executives were likely to be buyers of shares, with only one insider sale in early 2025. Overall, Science Applications International ...
Read More About This

Regional bank KeyCorp (KEY) has traded flat over the past year, with shares recently sliding over 20% from their 52-week highs. One trader sees further downside in the weeks ahead. That’s based on the May $12 puts. With 29 days until expiration, 32,986 contracts traded, a massive 244-fold increase in open interest from the prior volume of 135 contracts. The buyer of the puts paid $0.18 to make the bearish bet. KeyCorp recently traded for about $14, so shares would need to ...
Read More About This

While markets remain volatile, investors can take advantage of the market’s big swings. That includes targeting and buying shares of high-quality, industry-leading companies when the market is down. With earnings season underway, companies can show how they were faring going into the recent uncertainty, which may point the way towards how they’ll fare once this uncertainty ends. That could lead to great returns for investors who buy great companies that have been hit hard in this selloff. For instance, Wall Street investment ...
Read More About This