Trading Tips Blog

Every investor should have a funnel or a process that they use to narrow down the universe of tradable stocks to a select set of companies that they would be inclined to trade. One approach is to look at the so-called “smart money.” These large investors have a lot of money that they manage, and option activity is one place to look for where the money is going. The following six companies saw significant bullish option activity in the past ...
Read More

The FAANG stocks, listed below, are simply five of the best companies that have ever existed. Mostly from the tech sector, they’ve shown shareholders love over the years with massive returns on the stock market, combined with growing earnings—and a few even pay dividends! In fact, at times, the FAANG stocks have been the sole driver of returns for the overall market. The other 495 names in the S&P 500 Index have simply performed that poorly ...
Read More

As mortgage interest rates are testing all-time lows, homebuilder optimism has surged to the highest level since 1998. The recent National Association of Home Builders/Wells Fargo Market Index beat analyst estimates and points to extreme optimism in the midst of a recession. As far as the options market is concerned, there was a large put option trade that is looking for the  SPDR S&P Homebuilders ETF (NYSEARCA: XHB) to trade significantly lower by the start of 2021. According to ...
Read More

Over the past several weeks, there has been a significant insider selling in Netflix Inc (NASDAQ: NFLX). The breadth of selling has included some high-profile names, one of which is the Chief Content Officer. As the price has sputtered and viewers are becoming more indecisive, the company is preparing the launch of a “shuffle button.” As insiders are picking up the pace of profit-taking, it may make sense for investors to shuffle their ownership of Netflix as its credits ...
Read More

Many investors find the cost and convenience of ETF investing the best way to manage their money. One of the advantages of ETF is the fact that they can be traded or have conditional orders placed to help manage risk. Many ETFs have a robust option market with plenty of liquidity. However, many ETFs are dominated with many of the same stocks or other holdings. Here are five ETFs that can be used to provide diversification, income, and opportunity for ...
Read More

After the large drop in silver on August 11, the price has been tentatively moving higher. Tuesday was no exception as the price gapped on the open and faded back into the previous day’s range. While the movement looks to consolidate gains, the timing of a potential bullish breakout is difficult to predict. The options market on the iShares Silver Trust ETF (NYSEARCA: SLV) saw some rather bullish trading being made as the implied volatility prices another big breakout ...
Read More

It was 2013 and billionaire investors and rivals Bill Ackman and Carl Icahn began to get into it over Herbalife Nutrition Ltd (NYSE: HLF). Icahn has largely been a buyer of HLF since Ackman announced his sizable short position. With his last and only other sale coming near the 2018 peak, he’s back to selling again and is liquidating an even larger amount of his holdings this time. This may be the strongest signal since 2013 to sell Herbalife. If ...
Read More

It is a difficult environment for investors that need income when interest rates are scraping the bottom of the barrel. With the 10-year U.S. Treasury yield at 0.669%, the ability to generate a consistent return with little to no risk doesn’t exist. It’s pushing income investors into taking more risk to generate the needed return. The following four real estate investment trusts (REITs) are quality businesses that pay over a 4% dividend yield. If you’re an investor in need of income ...
Read More