An Oversold Play on a Beloved Tech Niche

Nothing moves in a straight line. For investors who make short-term bets on a company, this fact can produce large losses quickly. But for investors willing to play trends, waiting for a pullback on a stock in a long-term uptrend can prove worthwhile. That’s especially the case when a short-term drop has no apparent rationale behind it. That can happen fairly often in the tech space, as investors look to lock in profits quickly. That appears to be the case with QuantumScape ...
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Unusual Options Activity: Micron (MU)

Shares of Micron (MU) have trended up ahead of the company’s earnings report on Thursday. One trader sees shares continuing to move higher after earnings. That’s based on the February 2021 $85 calls. Over 15,940 contracts traded against a prior open interest of 608, making for a 26-fold rise in volume. The bet, expiring in 45 days, would need to see shares rise 9 percent to move in-the-money. Shares of the chipmaking giant are already at an all-time high after breaking through ...
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Unusual Options Activity: American Airlines (AAL)

Shares of American Airlines (AAL) have outperformed the market in recent months, even with a more recent pullback. News of a Covid vaccine could mean a quick return to air travel. But at least one trader thinks the current move is overdone, and a pullback is likely. That’s based on the August 2021 $12 puts. Expiring in 227 days, and with shares at $15, the trade would move in-the-money on a 20 percent pullback in shares. The option saw over 10,100 contracts ...
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This Pandemic Beneficiary Has Room to Move Higher

A number of companies were obvious beneficiaries from the pandemic. Work-from-home trends were the clear winners. But consumer spending changed in other ways as well. For instance, spending on business apparel dropped and sales rose on more comfortable apparel (especially items that wouldn’t be seen during a Zoom meeting). But despite the rising trend of athletic and leisure ware, many of these names have seen strong growth but a relatively poor stock performance. That seems to be the case with Under Armour ...
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Insider Trading Report: The Kroger Company (KR)

Ronald Sargent, a director at grocery chain The Kroger Company (KR), recently bought 3,200 shares. The buy increased his holdings by just under 3 percent, and came to a total cost of just over $101,000. This buy marked the only time a company insider bought shares in 2020. Insiders were generally sellers, with the last insider buy occurring in July 2019. Shares of the chain had a strong year as the grocer benefited from pandemic-related shopping trends. Shares of the grocery ...
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Unusual Options Activity: Yandex (YNDX)

Shares of Yandex (YNDX), an information technology and search engine company serving the Russian market, have been rallying with the overall market. At least one trader sees that uptrend continuing. That’s based on the May 2021 $75 call option. Over 2,800 contracts traded against a prior open interest of 132, for a 21-fold rise in volume. With shares at $69, it’s a bet on shares moving at least $6 higher in the next five months. The buyer paid about $4.60 for the ...
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This Play on Travel and Small Business Set to Thrive in 2021

A number of companies focus on one product or service. Those concentrating in areas affected by travel bans and small businesses fared poorly in 2020. But with an end in sight, these underperforming names may thrive in the coming year. That’s also true for companies that service these firms. One such name? American Express (AXP). The credit card company caters to a more affluent crowd, like those that travel and own small businesses. It’s one of the few big-name financials to see ...
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Insider Trading Report: Atlantic Union Bankshares Corp (AUB)

Russell Ellett, a director at Atlantic Union Bankshares Corp (AUB), has made multiple buys in the past few weeks. On December 29th, he bought 3,000 shares, paying just over $98,000. That follows on a similar 3,000 share buy on the 23rd that cost just over $96,000. It’s the first insider buy at the bank since mid-2018. A number of directors and C-suite executives have been sellers, largely in 2020 at lower prices. Shares of the regional bank, headquartered in Virginia, dropped ...
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