Trading Tips Blog

Big trade bets shares will rally in July. Shares of AbbVie (ABBV) dropped nearly 15 percent on news that it was planning to acquire Botox maker Allergan. One trader is betting that the move was overdone. On Friday, over 3,200 contracts traded on the August 2, 2019 $80 call option. With 35 days left to expire and AbbVie prices just under $72, the option is a bet on an 11 percent rally in shares in the month of July. That kind of percentage ...
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Trader bets on more downside for tobacco giant. Tobacco companies have had a rough year, amidst long-term sales declines and a decision to pass on major investments in the growing cannabis industry. One trader sees some more downside, with a large put option trade on Altria (MO). On Thursday, over 9,500 contracts of the July 12th $49 put options traded, a 57-fold increase in volume on the option. This option, with shares at $48, is already in-the-money. So while it expires in 15 ...
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Two insiders buy over $600,000 in shares. Insiders still remain incredibly bullish across the biotech and pharmaceutical space. On Wednesday, two insiders bought shares at Biohaven Pharmaceutical Holding Company (BHVN). CEO Vlad Coric bought 5,000 shares, shelling out just over $201,000. And director John Childs bought 10,000 shares, paying just over $403,000. This marks the first insider buys at the company in over two years, following insider sales last year in the $50-60 range. With shares in the low $40’s, the insider buys look ...
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Traders bet on drop following big earnings beat. Shares of Micron Technology (MU) surged over 14 percent on Wednesday thanks to a massive earnings beat. But some traders think the stock has rallied too much. On Wednesday, a large number of contracts with unusual options activity centered around put options on Micron, with many expiring on Friday, just two trading days away. One further out, the August 2nd $32 put options, has over a month to play out. This option had over 1,600 contracts ...
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Fund manager makes big buy after merger announcement in the sector. Money manager Keith Meister continues to be bullish at MGM Resorts International (MGM), the casino firm where he already owns 20 million shares and has a board seat as a director. On Tuesday, Meister picked up 380,651 additional shares, at a cost of about $10.59 million. This news comes after a big announced merger in the gaming space between Eldorado Resorts and Casears Entertainment. Typically, casinos can be a bit volatile, as ...
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Insiders buy millions of shares of genetic disease research firm. Insiders continue to be bullish on the pharma and biotech space at current prices. One of the latest buys is in Stoke Therapeutics (STOK). RWT Investments, a partnership that already owns more than 10 percent of shares, picked up 555,556 shares last week, increasing their stake by $10 million. Then, this week, another big insider trade occurred. Director Seth Harrison bought 1,388,889 shares via his holding company, Apple Tree Partners IV. This increased his ...
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Airline carrier may see big drop in shares. A large bet has been made that shares of Delta Airlines (DAL) will drop in the coming months. On Tuesday, nearly 3,000 contracts of the December 2019 $45 put options traded. With shares of the airline around $56.50, this is a bet on shares dropping by 20 percent between now and the end of the year. The airline industry has fared well lately, and oil prices have been slow to rally into their usual summer ...
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Hardware and construction equipment company may be in for a big drop. A large bet has been made that shares of Fastenal (FAST) will decline 25 percent by January 2021. On Monday, over 2,000 contracts of the January 2021 $25 put options contracts had been traded, against an open interest of 142, representing a 14-fold surge in volume. This bet, with shares currently at $32.50, would need to see shares decline at least 25 percent before paying off. With Fastenal’s business in construction ...
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