Unusual Options Activity: New York Community Bank (NYCB)

Big bet on shares moving 10 percent higher over next four months. At least one trader is betting on a sizeable rally in shares of New York Community Bank (NYCB) between now and mid-October. On Wednesday, over 10,100 contracts traded on an October 18th $11 call option for the regional bank. With a prior open interest of 462 this represents a twenty-two-fold surge in volume. Shares currently trade around $10, implying an upside of $1 per share, or about ten percent, for these call options to move in-the-money before expiration. Banks have been one of the few laggards in the market in the ...
Read More
|

CPI Data Shows Low Inflation

Prices for goods rise at a lower than expected rate in May. The Bureau of Labor Statistics released its May Consumer Price Index data on Wednesday. The data shows a gain of 0.1 percent, trailing estimates of 0.2 percent. This follows a 0.3 percent rise in April, which, if annualized, would have shown some of the largest inflation growth in nearly a decade. The new data suggests a slowing economy. Over the past 12 months, CPI has risen by 1.8 percent, and is a close gauge for tracking changes in inflation. The food portion of the index rose 0.3 percent after declining in April, ...
Read More
|

Insider Activity: Martin Midstream Partners LP (MMLP)

CFO, COO, and General Council pick up half million in shares. On June 11th, a large cluster of insiders bought up shares of Martin Midstream Partners LP (MMLP). These buyers include CFO Robert Bondurant, who picked up 10,000 shares. General Council Chris Booth picked up 9,500 shares. And the company’s COO, Randall Tauscher, picked up 20,000 shares. All told, these insiders bought nearly $500,000 in shares. Martin Midstream is an energy company with a focus on transporting and storing petroleum products and natural gas. These types of companies have been largely shifting away from a limited partnership (LP) structure in recent years due ...
Read More
|

Sprint, T-Mobile Merger Under Fire

States plan legal battle ahead of DOJ approval for the carrier merger. Shares of both T-Mobile (TMUS) and Sprint (S) struggled on Tuesday, on reports that at least 10 state attorneys general are preparing to stop the proposed merger of the company. The combined entity would create a $26 billion carrier company. The Department of Justice was expected to make a decision on the merger later this week, with the head of the antitrust division appearing to approve of the merger. The deal would have merged the two smallest wireless carrier companies on the market, so the prospect of antitrust action seemed low ...
Read More
|

China Plans New Stimulus Measures

China moves to bolster slowdown in economic growth. China announced new stimulus measures on Tuesday, which helped fuel a global push higher for stocks early in the day. The country announced that local governments are being urged to issue “special” bonds to pay for big projects. With local government debt in China seen as a big concern, the push from the state itself, and the likely backing implied by the push, has given investors one less reason to worry. This stimulus occurs against the backdrop of the trade war. With China’s large, export-driven economy potentially impacted by changes in tariff rates, mostly with ...
Read More
|

Unusual Options Activity: Tesla Motors (TSLA)

Big bet that automaker's shares will decline this month. At least one trader is betting on a modest decline in Tesla Motors (TSLA) between now and the end of the month. On Tuesday, over 7,500 contracts traded on a June 28th, 2019 $210 put option for Tesla. With a prior open interest of 286, this represents a twenty-six-fold surge in volume. Shares currently trade around $217, implying a downside of $7, or about three percent, for these put options to move in-the-money before expiration. This large bet is occurring as the company has its annual meeting. Shares of Tesla are exceptionally volatile and ...
Read More
|

Insider Activity: Occidental Petroleum (OXY)

Two insiders make a multi-million dollar buy in the oil giant. Two corporate insiders have just bought in over $2 million in shares of Occidental Petroleum (OXY). On June 10, CEO Vicki Hollub bought 37,460 shares, a commitment of over $1.8 million. SVP Marcia Backus bought 10,000 shares, putting down over $480,000. The buys come after shares have slid from $54 in the past month to $47 in recent days. Oil prices have been weak, particularly for this time of year when the summer driving season boosts demand for gasoline. As a result of this seasonal aberration, energy stocks have been moving downwards ...
Read More
|

One Corporate Event that Creates Buying Opportunities Time and Again

There’s an old market adage to buy when there’s “blood in the streets.” But there are plenty of ways to draw blood. In today’s litigious society, one such way is with a big lawsuit. From hot cups of coffee to weed killer that may be cancerous, it’s no surprise that America still leads the world in producing lawyers who need something to do—which usually means finding someone with deep pockets to sue. While many cases have their merits, a favorable jury will often hand out pretty sizeable sums—and that kind of news can set back the shares of a company’s price. The ...
Read More
|