Trading Tips Blog

Resort and casino operator
Wynn Resorts (WNN) has rallied 53 percent in the past year. One trader sees a reversal playing out at some point by 2025. That’s based on the January 2025 $47.50 puts. With 646 days until expiration, 3,000 contracts traded compared to a prior open interest of 166, for an 18-fold rise in volume on the trade. The buyer of the puts paid $2.46 to make the bearish bet. Shares recently traded for just over $109, so the stock would ...
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Markets will likely remain uncertain for some time. That means daily swings will occur, punctuated with moments of extreme fear or greed. Traders can take advantage of the swings in both directions. And investors can use drops to buy great companies at a fair price. A great company, such as one with a strong brand and a history of consistent dividend growth, will rarely trade at a great price. But they’re also usually overpriced, and it takes market fear to knock it ...
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Kevin Weil, President of Product and Business at
Planet Labs (PL), recently bought 274,000 shares. The buy increased his stake by 16 percent, and came to a total cost just over $997,000. This marks the first insider activity in nearly a year and a half. The company’s CEO bought 19,230 shares in December 2021, as did Weil and another director. There have been no insider sales since the company went public. Overall, insiders own 2.9 percent of the company. The early-stage satellite data ...
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Offshore oil and gas drilling supplier
Transocean (RIG) is up nearly 50 percent over the past year. However, one trader sees shares declining in the next 15 months. That’s based on the July 2024 $7.00 puts. With 466 days until expiration, 5,326 contracts traded compared to a prior open interest of 133, for a 40-fold rise in volume on the trade. The buyer of the puts paid $2.05 to make the bearish bet. Transocean shares recently traded just under $6.50, leaving this option ...
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Wall Street is fond of saying that investors shouldn’t look to catch a falling knife. However, once a stock has had a big drop, fears of a further decline tend to leave investors on the sidelines. That can mean missing out on the early part of a rally off extreme lows, which can be a big part of a total bull rally. That means it’s often ideal to buy when there’s still some lingering fear. Right now, the regional banks are teetering ...
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Blackstone Holdings III LP, a major holder at
Cheniere Energy Partners LP (CQP), recently added 96,470 shares to their holdings. The buy increased the fund’s position by about 1 percent, and came to a total cost just over $4.5 million. The fund later added another 27,706 shares, at a cost of just over $1.3 million. The fund has been a notable buyer of shares over the past two years. Otherwise, one director made a minor sale last year. Overall, insiders own 49.6 ...
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Gold mining and exploration company
Gold Fields Limited (GFI) has soared 40 percent in recent weeks as gold prices have once again topped $2,000 per ounce. One trader sees a further rally ahead. That’s based on the January 2024 $25 calls. With 287 days until expiration, 12,751 contracts traded compared to a prior open interest of 130, for a massive 98-fold jump in volume on the trade. The buyer of the calls paid $0.58. Shares recently traded for about $14.50. Shares would need ...
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There’s a common strategy for a company to take a short position in a company, then issue a research report explaining why. Typically, such reports will take company statements and claim that they’re embellished in some fashion. Often, these reports aren’t true, or have an element of truth to them that are grossly exaggerated, even if allowed under accounting standards. But in the short term, shares can get knocked down, allowing the short seller to profit quickly. The most recent short seller ...
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