Trading Tips Blog

The past week has seen a large selloff in shares of Discovery (DISCA), as a hedge fund went through a forced liquidation. One trader sees a potential rebound in the coming months. That’s based on the May 2021 $75 calls. Expiring in 51 days, over 12,660 options traded, a 41-fold rise in volume from the prior open interest of 307. The buyer paid about $0.50 for the trade. With shares in the $40 range, a move to $75 requires a high double-digit ...
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An outsized rally in financial stocks has helped keep the overall market from dropping too much as tech stocks have sold off. Traders still see some upside in the space. That’s based on the April 30th $42.50 calls on Bank of America (BAC). With 32 days until expiration, and with shares near $39, the bet has been made that shares will keep moving at least another 3 percent higher. Nearly 4,200 contracts traded against a prior open interest of 107, for a ...
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Tech stocks spent the first six weeks of the year posting strong gains, then promptly gave them up in the next six weeks. Now, with tech trading around breakeven for the year, many are wondering on the market’s next move. Not Cathie Wood. The found of ARK Investment, she’s interested in investing in disruptive tech, particularly when it’s out of favor. That included investments in Bitcoin and Tesla Motors (TSLA) at a time when those trades faced market derision. The recent selloff ...
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Joseph Schottenstein, a director at Designer Brands Inc (DBI) recently picked up 273,099 shares. The buy increased his stake by nearly 25 percent, and came to a total purchase price of $3.8 million. He was joined by Executive Chairman Jay Schottenstein, who made a 902,600 share buy. That increased his stake by nearly 45 percent, and came to a total cost of $12.6 million. Insiders at the firm now own nearly 8 percent of shares. Shares of the company, which owns a ...
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Semiconductor giant Micron (MU) has been hovering near all-time highs, even with the recent volatility in tech. One trader sees the potential for a move higher. That’s based on the April $98 calls. Expiring in 18 days, the trade is a bet that shares will move over 15 percent higher from their current price in the mid-$80 range. Over 11,000 contracts traded against a prior open interest of 116, for a 95-fold rise in volume. The option buyer paid $0.60 for the ...
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Thanks to lower interest rates and a demand for housing outside of dense urban areas, homebuilders have been a top-performing sector. Most companies in the space have trounced the market in the past year, and have been reporting incredible earnings and sales numbers. KB Home (KBH) is one such play. However, last week shares dropped on lower-than-expected sales. With the strong trends in place, however, analysts have been quick to upgrade shares of the homebuilding company. Besides trading at less than 9 ...
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MFN Partners, a fund with a director’s seat at PennyMac Financial (PFSI), recently added to their stake with a 344,322 share buy. The purchase came to just under $21.5 million, and increased their holdings by nearly 40 percent. Other directors have been buyers this year as well, however, there have also been some insider sales. Over the past three years, insider sales have topped insider buys, despite the recent switch. Overall, insiders own over 44 percent of shares. The mortgage servicing company ...
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Shares of crafting e-commerce platform Etsy (ETSY) have performed strongly in the past few months. With shares now down around to $200 from a recent high of $250, one trader sees a big move higher. That’s based on the May $250 calls. Expiring in 56 days, the option is a bet on a return to all-time highs in a short amount of time. 5,480 contracts traded against a prior open interest of 120, for a 46-fold rise in volume. The option buyer ...
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