Trading Tips Blog

The Azek Company (NYSE: AZEK) closed its share offering on Tuesday for 25 million shares and an additional 3.75 million shares exercised by underwriters. The price of the offering was at $33.25 a share, but the proceeds go to large shareholders in the company that are looking to cash out. The breadth sellers involved, and size of the offering makes you wonder whether insiders are anticipating a lot more downside. The Azek began trading on the secondary market on June ...
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As the market weakened Fed announcement on Wednesday, the options market on the SPDR S&P 500 ETF Trust (NYSEARCA: SPY) began to heat up on Thursday. The price of the SPY opened lower near the previous low and was able to stabilize around that level. However, as the price was stabilizing, there were some sizeable bearish option trades being made that indicate that level won’t hold. Looking back over the past couple of weeks, there has been several days where ...
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Do you remember the Nifty Fifty? These were the original “Blue Chip” buy and hold stocks in the 1960’s and 1970’s. That strategy worked until the late 1970’s and 1980’s. The FAANGs or FAAMGs are the new Nifty Fifty at least in terms of the breadth of ownership. The question is when will these names be replaced by a new generation of growth companies and who will they be. Goldman Sachs attempted to provide that answer with their own ...
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In the current market climate where people are moving a lot, it makes sense that a storage company may see some opportunity. Public Storage (NYSE: PSA) is a real estate investment trust (REIT) that does just that and they currently pay a 3.56% dividend yield. Just as this market is potentially heating up, insiders have started buying shares. These are the first insider buy transactions since August of 2017. Maybe this is a good time to revisit PSA as ...
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One of the trends of the pandemic is the increase in pet ownership. Of course, when you get a pet you need to care for them. That means food, medical care, and various miscellaneous supplies. In this story, clothing is optional. The shift to online ordering and increased pet ownership has created opportunity for investors. Here are four companies that have had recent pullbacks that are setup to buy the dip. Pet Stock #1: Chewy Inc (NYSE: CHWY) Chewy is a ...
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Yesterday, I posted on eight stocks that are considered “Rubber Band Trades.” Micron Technology, Inc (NASDAQ: MU) was one of these stocks in late August. Since that time, the company has received a series of bullish unusual option trades. That trend has continued this week and another large trade materialized on Wednesday that is dovetailing with Goldman Sachs upgrade on Monday. Goldman Sachs analyst Toshiya Hari upgraded the stock to buy from neutral with a $58 price target ...
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Fiat Chrysler Automobiles NV (NYSE: FCAU) announced a revision to the merger agreement with Peugeot SA. The agreement was a necessity for the company following the liquidity impact of COVID-19 policies. The company’s desire was to preserve the economic value and balance of the original agreement. Investors appeared to like the deal as the price of FCAU shot up over 7% on Tuesday. However, just before the close there was a large option trade that happened in one print ...
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A rubber band stock is a company that has sold off quickly and is ready to snap back. This setup can be explosive because of extreme oversold nature of the price. This setup can be particularly explosive with companies that are trading at a good value and has a stable outlook. Here are eight overstretched value companies poised for a strong rally in the coming weeks. There are several different approaches to apply the concept of a “Rubber Band Trade.” For ...
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