Trading Tips Blog

Traders can make a bundle buying companies with a high amount of short interest. That’s because once a stock’s price moves higher, short-sellers need to buy shares to cover their position. If shares can’t be found, and traders get desperate enough, the squeeze is on! One potential squeeze play is in a mall retailer that has 45 percent of its float (available shares) held by short sellers right now. It also reported earnings just strong enough to send shares moving higher, which ...
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Big data giant
Palantir (PLTR), which recently went public, traded sideways for a few weeks before starting a monster move higher. At least one trader sees shares continuing to head even higher from here. That’s based on the May 2021 $40 calls. Over 12,100 contracts traded against a prior open interest of 362. That’s a 33-fold rise in volume, and it came in as shares were up double-digits for yet another day. The trader paid about $7.10 for the contracts. With shares trading ...
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Johannes Huth, a director at
Coty Inc. (COTY), recently bought one million shares of the company. The total price came to $6.2 million, and represents the director’s first stake at the cosmetics firm. Hurth is joined by director Robert Singer, who also picked up 15,000 shares on the same day. His buy came to over $90,000, and represents a 4.7 percent increase in his holdings. This is the second buy from Singer in as many weeks. Insider activity over the past few ...
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Renewable energy companies have had a great month. Besides improving technologies and economies of scale that make them attractive investments now, the shift is leading to other changes. One of those changes is in regard to demands for base commodities needed to make this technology. One, in particular, has been in a shortage for years. Increased demand from green tech is likely to drive prices higher. That space is in copper. Best known for its use in wiring, it’s a key component ...
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Even energy stocks have seen some life in the past few weeks. Shares of
Exxon Mobil (XOM) have rallied from $32 to $42 since the start of the month. One trader sees shares trending even higher. That’s based on the February 2021 $50 calls. Expiring in 84 days, the calls would require shares to jump another 18 percent to move in-the-money. Over 21,500 contracts traded against a prior open interest of 205 for a 105-fold rise in volume! The trader paid about $0.75, ...
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Stocks have had a strong month thanks to the end of election uncertainty and the announcement of several Covid-19 vaccines. That takes some of the biggest risks in the market off the table. While that’s been good for most companies, many firms can still perform even better in the months ahead. That includes the manufacturers of vaccines themselves, which still need to move from a successful announcement to a delivered product. While it’s no surprise that investors have already bought into these ...
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Michael Kennedy, a director at
Old Republic International (ORI), recently bought 1,494 shares. The buy represented an initial stake in the company. The purchase came to a total cost of just over $26,000. Insiders have been buyers for months in relatively small amounts. Last month saw two directors buy a total of 2,200 shares. The last insider sale was in the autumn of 2019, at far higher prices than today. Shares of the insurance company sold off heavily earlier in the year ...
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At least one trader is betting that shares of pharmacy chain
Walgreens Boots Alliance (WBA) will rally in the coming weeks. That’s based on the surge of buying in the December 18th $41 calls. Those options just saw a 33-fold rise in volume, going from 100 open contracts to seeing over 3,250 trade. The buyer paid about $0.36, and expire in 22 days. To move in-the-money, shares would need to rally 7.3 percent from their current price near $38.20. Shares recently pulled back ...
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