Trading Tips Blog

Sure, it seems like this stock market can continue to gradually move higher indefinitely. But investors looking for warning signs have gotten a big one in recent weeks. It’s a sign that’s popped up before in the markets that has signaled some poor performance ahead. Trading Tips’ Andrew Packer explains in our latest video ...
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Bet on further rally this month.
The December 20th $20 call options on
JetBlue (JBLU) saw over 31,665 contracts trade hands, a 19-fold rise over the prior open interest near 1,700 contracts. The bet, expiring in 15 days, will be in-the-money if shares can rise another $1.00 from their current price near $19.00. The buyer paid $0.25, or $25 per contract, so any move higher in JetBlue shares could lead to a big percentage return in the next few days, even if shares don’t ...
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Bet on shares rallying through January.
The January 17th, 2020 $45 call options on
Vicor Corporation (VICR) saw over 1,100 contracts trade hands against a prior open interest of just over 100, for a 10-fold rise in volume. In order for the option to move in-the-money in the next 44 days before expiration, shares of the company will need to rally about $4 per share from their current price near $41, about a 10 percent increase. Vicor, a manufacturer of modular power systems, ...
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Bet on shares moving 20 percent higher by late January.
The January 17th 2020 $280 call options on
Amgen (AMGN) saw a 21-fold increase in volume with over 3,100 contracts trading hands. Shares of the company would need to rally about 19 percent from their current price near $234 for this out-of-the-money call to expire with any value. The option buyer paid around $0.10, or just $10 per contract, so it’s a cheap bet on shares moving higher in the next few weeks. Even ...
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Call buying indicates further rally this month.
With 18 days until expiration, the December 20th $36 call options on
Peloton Interactive (PTON) saw a 20-fold rise in volume, from 127 open contracts to over 2,600. As shares surged last week to $35, the option is merely $1 out-of-the-money, and a further rally could move it in-the-money. However, at a price over $2.15 per option, the option buyer needs to see shares rise to over $38 to make money at expiration. Peloton, a maker of interactive ...
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Bet on rally through December.
Call options expiring on December 20th with a $21 strike price on
iQIYI (IQ) saw a 73-fold rise in volume, going from 115 open contracts to nearly 8,500 contracts trading hands. With the trade expiring in 21 days, and as shares of IQ trader just under $20, it’s a bet that shares will rally about 6 percent in the next few weeks. Given that shares have traded as high as $29 in the last year, ...
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Bet on drop in the next week.
Put options expiring on December 6th with a $117 strike on
Royal Caribbean Cruises (RCL) saw an 89-fold surge in volume recently, going from 131 open contracts to over 11,675 contracts trade. The option, expiring in nine days, will likely expire worthless unless shares drop from their current price just under $120, about a 4 percent move in-the-money. At a cost of just $1.00, or $100 per contract, however, it’s an inexpensive bet on a drop. The $1.00 ...
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For years, many traders have hung onto the coattails of great investors. When someone like Warren Buffett or Carl Icahn disclose a new trade, there’s a surge of buying as smaller players also get into the trade. But there’s another elite group that could be followed at the right time for profits as well. That group? Celebrities. Trading Tips’ Andrew Packer explains in our latest video ...
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