Trading Tips Blog

Shares of athletic apparel firm Under Armour (UAA) have been part of the market’s uptrend in the past few weeks. One trader sees shares continuing even higher. That’s based on the January 8th 2021 $17 call option. Over 14,110 contracts have traded, a 140-fold rise in volume from the prior open interest of 101. Expiring in just 35 days, the buyer paid $0.95 for the contracts, which will move in-the-money if shares move just 30 cents higher. Adding in what the buyer ...
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Christian Winkle, a director at Beazer Homes (BZH), recently bought 3,775 more shares. That increased his stake by over 13 percent, and came to a price just over $55,000. This follows two buys that he made in the prior two months. While this director has been buying, C-suite executives have been sellers of shares this year. And one director sold a massive stake back in March, when the share price was less than half of what shares go for today. While ...
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Ride sharing giant Uber (UBER) had a great month in November. Legislation in California to classify contractors as employees failed, and shares rallied. One trader sees shares moving even higher. That’s based on the December 24th $60 calls. Over 2,770 contracts traded against a prior open interest of 153, for an 18-fold rise in volume. The trader paid about $0.32 for the option, which expires in 21 days. With shares near an all-time high at $51, it will take another 17.6 ...
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Thomas Aaron, a director at Cincinnati Financial (CINF), recently bought 2,500 shares of the company. The buy increased his stake by 115 percent, and the price paid came in just under $200,000. This follow on two insider buys in early November from another director. Directors have been accumulating shares throughout the year, even as one C-suite executive made a large sale of shares. Over the past few years, insider buys have outnumbered sales. Overall, insiders own 6.8 percent of shares. A ...
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Investors love companies with a recurring revenue model. Rather than selling a one-off product like a refrigerator or car, selling a monthly subscription to, say, a streaming service creates steadier cash flows. That kind of steady growth is why any company with a subscription service reports their growth numbers. It’s also why they’re on the lookout for ways to increase the number of loyal subscribers as well. In the e-commerce world, Amazon (AMZN) came to dominate thanks to the use of free ...
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James Meyer, President and CEO of FreightCar America (RAIL), recently added 27,500 shares. The buy increased his holdings by nearly 15 percent, and came to a total cost of just over $58,000. The buy follows on a 5,500 share buy from a director just two days before. Insiders have been buyers of shares over the past three years with no sales. The last insider buys before these two occurred in early 2019, at prices as much as 55 percent higher. A ...
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Earnings season can be full of surprises. A company can miss on earnings, but still do better than expected. As a result, shares may end up rallying! The opposite is quite common too. A company can report fantastic earnings and growth, yet not meet expectations. That tends to result in a selloff in shares. In that case, however, there’s a buying opportunity as the company is clearly growing over time. That seems to be the case with Zoom Technologies (ZM). The company ...
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International mining giant Vale (VALE) has fared well this year as a recovering global economy has increased demand for raw commodities. One trader sees this playing out even further. The March 2021 $18 calls just saw 17,700 contracts trade against a prior open interest of 788, for a 22-fold rise in volume. The trade, expiring in 107 days, is that shares will move nearly $3 per share higher, or about 17 percent. The trader paid $0.51. Based in Brazil, Vale is best ...
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