Trading Tips Blog

Social media giant
Facebook (FB) has been trading in a range between $250 and $300 over the past few months. At least one trader sees a big selloff ahead. That’s based on the September $150 put options. Expiring in 210 days, shares would need to drop 47 percent for the trade to move in-the-money. Over 12,400 contracts traded, a 43-fold rise in volume over the prior open interest of 288. The trader paid about $1.54 for the options. With shares trading in a tight ...
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Earnings season continues to create new trading opportunities for investors. While the explosion of e-commerce trends over the past year is likely to slow, the gains made are likely to hold. So when a company warns on guidance, any selloff can create a buying opportunity. Case in point?
Shopify (SHOP). The company saw stronger-than-expected earnings in the fourth quarter of 2020, yet shares sold off on lower guidance for 2021. That’s the market’s mistake. The selloff in shares creates a buying opportunity ...
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Tech giant
Apple (AAPL) can’t seem to catch a break. The company hit an all-time high in September, then had a large pullback. It re-tested that high in late January and shares are pulling back yet again. But at least one trader sees shares moving higher in the near future. That’s based on the March 26th $141 calls. Over 4,075 of the contracts traded against a prior open interest of 216, a 19-fold rise in volume. The trade expires in 36 days. The ...
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Meryl Hartzband, a director at
Everest Re Group (RE), recently picked up 1,000 shares. The buy increased the stake by nearly 30 percent, and came to a total cost of $244,000. This marks the first insider buy at the company in nearly a year. Company insiders, notably the Chairman and President, have both been sellers of shares in the past year while directors have been more likely to buy. Reinsurance companies bundle up insurance policies written by other companies and swap them ...
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Gold prices have been lackluster lately, but some traders see a further potential move higher in the gold mining space. That’s based on the call option activity in
Yamana Gold (AUY). The trade? The $4.50 calls expiring in March, just 30 days away. Over 3,600 contracts traded against a prior open interest of 140, for a 26-fold rise in volume. The trade is about $0.20 in-the-money already, given the current share price near $4.70. The trader paid about $0.43 for the option. Following a ...
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David Brooks, a director at
Capital Southwest Corp (CSWC), recently added 1,500 shares. The buy increased his holdings by just over 5 percent, and came to a total cost of just under $31,000. This marks the first insider buy in nearly a year, when the company CEO and CFO each picked up more than 20,000 shares near the market low. Overall, insiders have been buyers over the past three years, with no insider sales since that time. Overall, insiders own 7.7 percent ...
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There are many tech stories dominating the market today. From 5G to electric and autonomous vehicles, many of them have one thing in common. They require storing and processing large amounts of data. That’s why there’s also a tech trend known as big data. Like any other tech play, it will move in fits and starts, creating opportunities for traders to make some quick profits buying on a dip and selling on the market’s periodic over-optimism. A dip has arrived in
Palantir (PLTR), ...
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Expecting the semiconductor industry to take a breather after its big run? Think again. At least one trader sees a massive move higher. The August $80 call options on
Marvell Technology Group (MRVL) tell the story. Over 9,200 contracts traded from a prior open interest of 307, a 30-fold rise in volume on the trade. The trade, expiring in 185 days, will move in-the-money if shares rally another 48 percent from their current price near $44. The call buyer paid about $1.97 to ...
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