Trading Tips Blog

Shares of digital payments company Square (SQ) have been off in recent weeks, coming down from a high near $280 per share closer to $200. At least one trader sees further upside ahead. That’s based on the May $200 calls. Expiring in 50 days, and with shares around $215, the option is already nearly $15 in-the-money. Over 10,300 contracts traded, a 25-fold rise in volume from the prior open interest of 413. The buyer paid about $25 for the contracts, or about ...
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Julia Gouw, a director at VIZIO Holding Corp (VZIO) recently made a 35,000 share buy to start a new stake in the company. The purchase price came to $735,000. This marks the first insider buy since the company’s IPO in March. A number of other insiders, from major holders to the company COO to a director, have been selling off their stakes, even as shares have pushed higher. Shares are up about 14 percent since their IPO price. The consumer electronics ...
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The past few years has seen an explosion of interest in software, security, and the rise of high-tech vehicles. A number of new and existing companies have been working to develop solutions for these spaces. One surprising name is BlackBerry (BB). The former smartphone company has pivoted to security and automotive software, looking to create secure connections. The turnaround has been gradual, but it does look like it’s happening. Nevertheless, shares have suffered as the company reported $215 million in earnings ...
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Last year’s pandemic lockdowns created a number of shifting trends in retail. One of them involved purchasing fewer apparel items for a business market, and more leisure and athletic wear. With the pandemic ending, traders are starting to look elsewhere. But a few companies in the space may still thrive. One potential continued winner is Lululemon (LULU). With fashion trends still supporting casualwear, the firm may still be a winner. That’s why the company also received an upgrade ahead of its ...
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Ronald Little, a director at Gold Resource Corp (GORO), recently bought 20,000 shares. The buy doubled his holdings, and came to a total cost of just over $52,000. Over the past few years, buyers have far outnumbered sellers. Company insiders were bigger sellers of shares back in 2018, however, at a time when shares were priced twice as high as they are today. Overall, insiders own just over 3 percent of shares. Gold Resources explores, develops, and produces gold and silver, among ...
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The past week has seen a large selloff in shares of Discovery (DISCA), as a hedge fund went through a forced liquidation. One trader sees a potential rebound in the coming months. That’s based on the May 2021 $75 calls. Expiring in 51 days, over 12,660 options traded, a 41-fold rise in volume from the prior open interest of 307. The buyer paid about $0.50 for the trade. With shares in the $40 range, a move to $75 requires a high double-digit ...
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An outsized rally in financial stocks has helped keep the overall market from dropping too much as tech stocks have sold off. Traders still see some upside in the space. That’s based on the April 30th $42.50 calls on Bank of America (BAC). With 32 days until expiration, and with shares near $39, the bet has been made that shares will keep moving at least another 3 percent higher. Nearly 4,200 contracts traded against a prior open interest of 107, for a ...
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Tech stocks spent the first six weeks of the year posting strong gains, then promptly gave them up in the next six weeks. Now, with tech trading around breakeven for the year, many are wondering on the market’s next move. Not Cathie Wood. The found of ARK Investment, she’s interested in investing in disruptive tech, particularly when it’s out of favor. That included investments in Bitcoin and Tesla Motors (TSLA) at a time when those trades faced market derision. The recent selloff ...
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