Trading Tips Blog

Texas-based utility CenterPoint Energy (CNP) has shed 16 percent over the past year. One trader sees a further decline ahead for the stock. That’s based on the January 2024 $30 puts. With 129 days until expiration, 4,000 contracts traded compared to a prior open interest of 105, for a 40-fold rise in volume on the trade. The buyer of the puts paid $2.41 to make the bearish bet. CenterPoint recently went for about $28, meaning the option is already about $2.00 in ...
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Most investors playing a tech trend tend to look for the companies that most directly play to that trend. For tech stocks, that may mean owning chip companies or software companies. However, a powerful trend can impact multiple industries. And investing in industries implementing new technologies before they see a benefit can lead to great returns. The trick is to look at the adoption of these disruptive technologies when the market is still focused elsewhere. For instance, self-driving cars are still a ...
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Marshall McCrea, Co-CEO at Energy Transfer (ET), recently added 50,000 shares. The buy increased his holdings by 1 percent, and came to a total cost of $682,000. The buy comes a week after an EVP bought 10,000 shares for $130,000. And two weeks after the company’s Chairman of the Board bought 3,000,000 shares for $38.9 million. Over the past two years, there have been over two dozen insider buys, with zero insider sales. Overall, Energy Transfer insiders own 17.2 percent of ...
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Industrial conglomerate Honeywell (HON) has rallied and then faded out over the past year, leaving shares flat. One trader sees the current downtrend continuing in the coming months. That’s based on the December $170 puts. With 98 days until expiration, 10,028 contracts traded compared to a prior open interest of 199, for a 50-fold rise in volume on the trade. The buyer of the puts paid $2.30 to make the bearish bet. Shares recently traded for about $185, so they would need ...
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When a trend is hot, owning any company related to that trend can lead to big gains quickly. But when the trend shifts, a company can fall out of favor as well. Some trends occur just once. Others are more cyclical. Targeting cyclical trends when they’re out of favor can lead to great returns. When the cycle turns, it can lead to life-changing profits. Especially when they relate to tech-related trends. For instance, electric vehicles are a top trend. But stocks related ...
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Eric Etchart, a director at Alamo Group (ALG) recently bought 500 shares. The buy increased his stake by 5 percent, and came to a total purchase price of $88,295. This marks the first buy at the company since March 2022, when another director bought 500 shares. Since then, there have been about 10 sales, including sales from the company’s CFO and CEO. However, some of those sales were driven by the exercise of stock options. Overall, company insiders own 2.4 percent ...
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Entertainment and sports company Endeavor Group Holdings (EDR) is slightly up over the past year, but shares have been getting hit hard in recent sessions. One trader sees a further decline in the weeks ahead. That’s based on the November $20 puts. With 70 days until expiration, 24,309 contracts traded compared to a prior open interest of 144, for a 169-fold jump higher in trading volume. The buyer of the puts paid $0.85 to make the bearish bet. Endeavor shares recently traded ...
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The financial sector is dominated largely by banks, but there are other niches in the space that can be a better place for investors. That’s because bank stocks can see massive declines during credit events. Or if a bank goes under, the stock can become worthless. That’s why other parts of the financial sector look reasonable. Many tout the insurance space. But asset managers are often an overlooked play. Asset manager Blackstone (BX) is one such player, although it may be Read More