Trading Tips Blog

For-profit prison company Geo Group (GEO) has seen shares trend down in recent weeks. The Biden administration is looking to get out of for-profit prison contracts, suggesting weakness ahead. But one trader sees a bounce first, if not a reversal higher. That’s based on the April $9 calls. With 49 days until expiration and shares just under $8, the stock price would need to move about 12 percent higher for the trade to move in-the-money. Over 12,950 contracts traded, a 43-fold rise ...
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Earnings season continues to offer traders a number of new buying opportunities in great names. That’s even the case when a company declines due to technical reasons rather than fundamental ones. Take the case of Plug Power (PLUG). The hydrogen energy company sold off following an earnings miss. The miss occurred as the company recognized charges from the vesting of warrants. The warrants vested faster than expected in part due to the rising stock price. Talk about being punished for being successful! ...
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Mithaq Capital, a major holder in Software Acquisition Group II (SAII), recently added to their stake with a 1.56 million share buy. The buy increased their holdings by 26 percent, and came to a total price of $17.2 million. This follows on a buy from the day before of 658,000 shares totaling just over $7.5 million. Those are the sole insider buys since the firm went public. SAII is a SPAC, or special purpose acquisition company. Otherwise known as a “blank ...
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Traders looking for market-beating opportunities outside the tech space have been increasingly attracted to energy. Gently-rising oil prices have been a rising tide for the sector. One play getting some attention? Services giant Halliburton (HAL). One trader likes the March 19th $23.50 call options, just $1.50 over the current price near $22. Over 9,850 contracts traded, a 61-fold rise in volume from the prior interest of 162. The buyer paid about $0.78 for the options, which expire in 22 days. Shares have recently ...
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Payment processing company Square (SQ) has had a tremendous year. But the market wasn’t too impressed by the company’s recent earnings numbers. While it beat on both revenue and profit expectations, the rate of growth appears to be slowing. That’s led to a selloff in shares, adding to losses from the tech selloff earlier in the week. However, those numbers overlook some more powerful trends in place. For instance, the company saw its revenue derived from Bitcoin rise from over $100 million ...
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Scott Letier, a director at Conduent (CNDT), recently picked up 10,000 shares. The buy increased his stake by 4 percent, and came to a total cost of just under $50,000. He was joined by CEO Clifford Skelton, who bought 20,661 shares, for a total buy of just over $100,000. Overall, insiders have been buyers of shares over the past three years, with no insider sales in that timeframe. Overall, insiders own 6.2 percent of shares. The medical data management company was spun ...
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Video game producer Activision Blizzard (ATVI) has fared well, as strong trends in the gaming industry have led to massive profits. At least one trader sees shares moving higher. That’s based on the May $95 call options. Over 2,700 contracts traded against a prior open interest of 153, for a 18-fold rise in volume on the trade. Expiring in 86 days, the trade is at-the-money, given that shares trade near $96. The buyer paid about $6.50 for the contracts on average. Shares of ...
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Brian Choi, CFO of Avis Budget Group (CAR), recently picked up 23,735 shares. The buy set him back $1.09 million, and represents an initial stake in the company. This marks the first insider buy of the year. Insiders, largely led by a major holder, have been big buyers in the past year.  Company executives have generally been light sellers, provided you go back to 2018 or 2019. The insider buy occurs as shares hit a 52-week high. Shares are up nearly ...
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