Trading Tips Blog

Income investors are a shy bunch. If a company looks like it’s not going to provide investors with the same (or a growing) level of income, they’ll leave. When that happens, a price drop occurs, sometimes creating a value opportunity. While investors may not want to stay in a company that’s cut their dividend, sometimes buying a company after it cuts its dividend makes sense. The lower price paid may offset a decline in yield. That looks to be the case with ...
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Michele Hooper, a director at United Airlines Holdings (UAL), recently purchased 1,900 shares. The buy increased her stake by 166 percent. The purchase price for the shares came to just over $93,000. This marks the first insider buy at the airline since mid-2019. Insiders have largely been sellers this year. That includes sales from directors and C-suite executives, even at prices as much as 43 percent lower than where shares trade today. The overall insider track record here is a tough ...
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Shares of electric vehicle play NIO Limited (NIO) have had massive returns this year. However, shares have started to slide in recent sessions. One trader sees the possibility of a further decline. That’s based on the May 2021 $36 puts. Over 2,125 of the contracts traded hands, a 13-fold rise in volume from the prior open interest of 179. With shares trading near $44.50, the option would move in-the-money if shares dropped about 20 percent from their current price. The trader paid ...
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While toys sell throughout the year, the holiday season tends to see the biggest volume of sales. That’s a boon to toy makers in general. So it’s no surprise that this sector is seeing a holiday upgrade, courtesy of analysts at Citigroup. But the analysis has one key trend this year. Toy making has gone beyond simply manufacturing physical products. It also involves being in the entertainment industry, integrating its toys with intellectual property and technologies to create a bigger experience. With ...
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Lemuel Lewis, a director at Dollar Tree (DLTR) recently added 1,000 shares to his holdings. The buy increased his stake by over 4 percent, and came to a total purchase price of over $112,000. This marks the first insider buy at the company since March. Company insiders have generally been sellers of shares, ranging from other directors to the company’s CEO and COO. Insiders have sold at prices as much as 16 percent higher than the current price. Overall, insiders own ...
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Shares of consumer tech giant Apple (AAPL) have been rising in recent sessions, but are still well under the all-time high set in early September. One trader sees the current rally ending. That’s based on the January 8th 2021 $125 put options, expiring 29 days from now. Over 8,185 of the contracts traded hands, a 21-fold rise in volume over the prior open interest of 388. The option is at-the-money, with shares trading just a hair under $125. The option buyer paid ...
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Shares of rideshare giant Uber Technologies (UBER) have shaken off a pandemic-driven drop to rally to all-time highs in recent weeks. One trader sees shares moving even higher. That’s based on the activity in the January 2023 $75 calls. Over 2,550 contracts traded against a prior open interest of 148, for a 17-fold rise in volume. Expiring in 772 days, shares would need to rise about 40 percent to move in-the-money. The trader paid about $8.70 for the contracts. To make ...
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AJ Teague, co-CEO of Enterprise Products Partners (EPD), recently added 5,025 shares. The buy came to $100,000, and represents a 0.25 percent increase in the co-CEO’s holdings. This is the third buy from the co-CEO this year. Other insiders have also been active buyers throughout the year, including both directors and C-suite executives. Investors would have to go back two years to find the last insider sale, which was a small one relative to insider buying. Overall, insiders own an impressive ...
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