Unusual Options Activity: Zillow (Z)

Real estate listing firm Zillow (Z) saw shares soar to $200 before dropping back down to $120. Now, with shares on the rise to $140, one trader is betting on a move higher. That’s based on the September $120 calls. With 162 days until expiration, the option is about $20 in-the-money given the recent price of $140. Over 10,100 contracts traded compared to a prior open interest of 133, for a 76-fold rise in volume. The trader paid about $33 for the ...
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Insider Trading Report: Joann Inc (JOAN)

Wade Miquelon, President and CEO of Joann (JOAN) recently bought 47,500 shares. The buy increased his stake by 87 percent, and came to a total cost just over $540,000. This is the first insider trade since the company went public in March. When that happened, a number of institutional owners and directors sold shares, but many company executives bought shares. Overall, company insiders own over 4 percent of the company. The chain of craft stores operates over 855 locations in 49 ...
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Recurring Revenue Services Make for Strong Investment Returns

Wall Street loves hearing the words “recurring revenue.” That business model means receiving smaller sums from a customer, but on a regular, typically monthly, basis. Companies that move towards that model tend to be rewarded with upgrades. One big name tech giant has been lagging the market lately. But it’s been focusing on increasing its recurring revenue by developing a suite of services rather than focus on creating new hardware to sell to customers. That company is none other than Apple (AAPL) ...
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Unusual Options Activity: Applied Materials (AMAT)

Semiconductor play Applied Materials (AMAT) has more than doubled since November. One trader sees the trend continuing. That’s based on the June $185 calls. Expiring in 72 days, over 9,000 contracts traded against a prior open interest of 150, for a 60-fold rise in volume. Shares would need to rise about 22 percent from their current price of $143 to close in-the-money at expiration. The buyer of the options paid about $3.10 for the contract. Thanks to a shortage in the semiconductor ...
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Buybacks Bode Well for this Key Tech Supplier

Stock buybacks have had mixed results. But companies that are able to buy back shares at this point in the economic recovery are likely companies that are doing something right. Case in point? Corning (GLW). The high-end glass supply company, responsible for products such as smartphone screens, is looking to buy back a 35 million share block held by Samsung Display. The block represents about 4 percent of outstanding shares. Shares of Corning moved higher over 3 percent on the news ...
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Insider Trading Report: Republic Services Inc (RSG)

Cascade Investments, a major owner at Republic Services Inc (RSG), recently bought 10,055 more shares. The buy came to just under $1 million, and increased the fund’s holdings by 0.01 percent. Cascade Investments is the fund managing the stock market investments of Bill Gates. This is the first insider buy since late 2018. Insiders have mostly been sellers since then, particularly C-suite executives. Among company insiders, less than 0.2 percent of shares are owned. Shares of the waste management company have ...
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This Down-and-Out Asset Looks Oversold—Here’s How to Play It Higher

Investing is often about reverting to the mean. After one asset soars higher, another is likely out of favor. That will generally change as traders book profits in one area and look for a new trend underway. A quiet trend has been going on with gold. Prices fell under $1,700 in early March, and have started to show some strength again. As investors look to alternatives to gold such as Bitcoin, the metal has gotten oversold, but is starting to move ...
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Insider Trading Report: Purple Innovation Inc (PRPL)

Gary Kiedaisch, a director at Purple Innovation (PRPL) recently picked up 5,000 shares. The buy increased his holdings by 12 percent and came to a total purchase price of $150,000. That’s the first insider buy at the company since March 2020. Insiders have typically been sellers over the past year, including a multimillion share sale from a prior major owner. Insiders at the company now own just under 0.5 percent of shares. That’s too bad, as those insiders missed out on ...
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