Trading Tips Blog

Certain sectors of the economy tend to be more susceptible to an election than others. Defense spending can impact the value of defense contractors. One of the bigger areas that tends to see big swings? Managed-care companies, also known as health insurers. History shows that these companies tend to decline before an election, and then recover. A recent analysis shows that these stocks tend to underperform the stock market by over one-third heading into an election. That’s a good argument for ...
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Chinese electric-vehicle company NIO Limited (NIO) has been a runaway winner and popular stock to trade. One trader sees shares heading even higher before the end of the year. That’s based on the surge in buying on the December $39 calls. Over 1,580 contracts traded on Friday, a ten-fold rise in volume from the prior open interest of 158. The trade expires in 48 days, and requires a near-30 percent jump in shares from here to move in-the-money. The trader paid about ...
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Defense contractor Raytheon (RTX) has seen shares slide in recent sessions following a probe over its contracts with the U.S. government. But at least one trader sees the issue being a short-term one. That’s evidenced by the trade in January 2022 $55 call options. Over 4,600 contracts traded yesterday against an open interest of 553, for an eight-fold increase in volume. The trader paid $6.60 on average for a contract just $2.50 out-of-the-money. Shares of RTX have dropped over 15 percent since ...
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2020 has been a tough year for companies trying to reward shareholders interested in income. Some have voluntarily suspended, reduced, or cut their dividends. Others have not acted voluntarily. But a few companies have continued to fare well. And a high-yielding company that has managed to maintain its dividend this year is likely to be a big winner in the years ahead. A company that can thrive amidst a pandemic is the kind of company long-term investors want to own. One surprising ...
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John Holder, a director at Genuine Parts Company (GPC) recently picked up 2,200 shares. The buy increased his total holdings by over 20 percent, and cost the director just over $201,000. This is the second insider buy at the company this year, also from a director back in March. Insiders have been both buyers and sellers of shares over the past few years. Insiders own nearly 3 percent of the company. Genuine Parts Company distributes automotive and industrial parts and materials ...
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Steven Bateman, a director at Old Republic International (ORI), recently added 4,000 shares to his holdings. The buy increased his stake by nearly 10 percent and came to a total purchase price of just over $32,000. Insiders have been active buyers of shares throughout 2020, with no insider sales since 2019. Most of the buys have been from directors. This has pushed insider ownership up to just over 6 percent of the company. A diversified insurance company, Old Republic provides automobile ...
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Credit card companies have seen their shares bounce, but if consumers stop paying the bills, it’s a space that could be in for some trouble. Yet one trader still sees upside ahead for the sector with a bet on Visa (V). The bet? The September 2021 $200 calls. Over 16,900 contracts traded against a prior open interest of 453, for a 37-fold increase in volume. The trade, expiring in 323 days, will move in-the-money if shares rise about 10 percent from their ...
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Although shares of Microsoft (MSFT) dropped on Wednesday, the culprit wasn’t the company’s earnings. They were stellar. Rather, the reason was the overall decline in markets as traders moved to cash. That creates a buying opportunity, particularly as Microsoft continues to grow its market share in the cloud services space as well as in the gaming space. The company reports that Microsoft Teams has moved from 44 million users to 115 million… since March. It’s clear that the company has been ...
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