Trading Tips Blog

Shares of packaged food company
B&G Foods (BGS) have been cut in half in the past year. One trader sees further downside in the months ahead. That’s based on the January 2023 $12.50 puts. With 87 days until expiration, the options saw a volume of 5,061 contracts, a 42-fold surge in volume from the prior open interest of 121. The buyer of the puts paid $0.85 to get into the trade. Shares recently traded closer to $14.50, so they’d need to fall about ...
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It’s likely the stock market won’t end its current downtrend until the Fed stops raising interest rates. But given how bear markets work, we may be closer to the end than the beginning. The best strategy now is to start buying great companies at beaten-down prices, rather than wait for a move higher. That’s because the start of a bull market may come with some skepticism. And investors who wait can miss out on the extreme bargains from the low. By buying ...
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Stephan Eastman, a director at
Fastenal Co (FAST), recently picked up 1,000 shares. The buy increased his holdings by over 11 percent, and came to a total cost of just under $44,000. He was joined by another director who picked up 500 shares around the same time, paying about $22,500 to get in. Theis follows on a number of director buys last month, and a 5,000 share buy from the company President and CEO. Overall company insiders own 0.2 percent of shares. Shares ...
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Shares of oil giant
Petroleo Brasiliero (PBR) are up 48 percent in the past year thanks to strong energy prices. One trader sees a further rally in the coming weeks. That’s based on the November 11 $17 calls. With 18 days until expiration, 19,365 contracts traded compared to a prior open interest of 218, for an 89-fold jump in volume on the trade. The buyer of the calls paid $0.66 to get in. Shares recently traded near $15.50, so they’d need to rise ...
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The only constant in life is change. Even great companies that have consistently rewarded shareholders for years come up with new products or find ways to improve profitability for the work that they do. That’s especially true for companies that are making the switch to the latest digital trends. While the Internet has now been around for a generation, its use is still growing as more join online networks and conduct tasks there that used to only take place in the ...
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Robert Henkel, a director at
Owens & Minor (OMI), recently added 1,000 shares. The buy increased his holdings by 3.7 percent, and came to a total cost of just under $16,000. The director was also the most recent buyer of shares back in July, also picking up 1,000 shares at a price more than double where the stock trades today. Over the past two years, these have been the only insider buys, compared to a number of insider sales. Overall, insiders own ...
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Shares of consumer goods company
Procter & Gamble (PG) moved higher earlier this week on earnings, although the company did warn on the effect of a strong dollar. One trader sees that as bearish. That’s based on the January 2024 $80 puts. With 455 days until expiration, 5,002 contracts traded compared to a prior open interest of 214, for a 35-fold rise in volume on the trade. The buyer of the puts paid $1.78 to make the trade. Shares recently traded near $130, ...
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It’s no surprise that investors who follow company insiders can make above-average returns over time. Company insiders are knowledgeable about their company and its operations. But following big-name investors after they build a stake in a company can make a similar profit. That’s because those who make a big buy can often earn board seats, and work on strategies to improve the business, sell off a division, or otherwise do something to result in better performance for investors. Activist investors have been ...
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