Trading Tips Blog

With the tech selloff, investors are looking to other parts of the market. Defensive stocks have held up well. But the real value in this market is buying into companies that can raise their prices to deal with inflation… and not lose customers doing so. Offering everyday low prices, one such area is fast food. These companies have streamlined operations, a loyal customer base, and haven’t performed as well as some of the faster-moving parts of the market in the past ...
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While the pandemic lockdowns are all but over, at least one trader expects shares of
Zoom Communications (ZM) to regain some of their recent decline. That’s based on the September $290 calls. Nearly 6,300 contracts traded against a prior open interest of 114, for a 55-fold jump in volume. The trade has 126 days to play out, and with shares right near $290, it’s an at-the-money trade. The buyer of the call paid about $36.15 to make the trade. With an at-the-money trade, ...
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The rise of electric vehicles over the past few years has proven strong even with a global pandemic. Companies have sprouted up over the past year to take advantage of the trend. Any company that can offer a significant innovation is capable of grabbing a big market share for itself. But it also has to be able to scale up that technology to commercially-viable levels. One promising company is
QuantumScape (QS). A recently-public company, they’re working on a new solid-state battery. The company ...
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Peter Nolan, a director at
Activision Blizzard (ATVI), recently bought 20,000 more shares. The buy increased his holdings by nearly 12 percent, and came to a total purchase price of $1.9 million. This marks the first insider buy of 2021. Insiders tend to be sellers of shares, at the C-suite level, suggesting a large amount of stock options being exercised. However, insiders have been known to buy on dips, including large insider buys last year at the start of the pandemic. Overall, ...
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Shares of office real estate investment trust
Vornado Realty Trust (VNO) are down over 50 percent from their peak price in 2015. While recovering from last year’s work-from-home trends, one trader sees a decline in shares in the coming months. That’s based on the September $40 puts. With 127 days until expiration, over 10,535 contracts traded against a prior open interest of 175, for a 60-fold rise in volume. With shares around $46, the option would move in-the-money on a 15 percent decline ...
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Colonial Pipeline shut down on Friday following a ransomware attack. The pipeline moves about 45% of the fuel used in the Northeast from facilities in Texas. The company has a tentative date to restore operations by Friday, leaving the pipeline off for a whole week. The impact is raising gasoline prices and the possibility of shortages in some areas, but also bringing an eye once again towards cybersecurity companies. As the first cyberattack in the energy sector specifically, it’s clear that ...
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Shares of semiconductor company
Micron Technology (MU) have been caught up in the recent tech selloff. One trader sees the potential for a bounce higher in the near future. That’s based on the August $82.50 calls. Over 12,730 contracts traded, a 35-fold rise in volume from the prior open interest of 360 contracts. The buyer of the option paid $6.25 to make the trade, which expires in 100 days. With shares of Micron selling off to around $80, the option will move in-the-money ...
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Joseph Nowicki, a director at
Lumber Liquidators (LL), recently bought 6,274 shares. The buy increased his holdings by 258 percent, and came to a total purchase price of $150,000. This is the first insider buy since last August. Since 2019, company insiders have been exclusively buyers. This is the first purchase from a director since 2014. Overall, company insiders own nearly 5 percent of the company. Shares of the home improvement retail chain are up 217 percent in the past year, although ...
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