Unusual Options Activity: Applied Digital Corporation (APLD)

Data center operator Applied Digital Corporation (APLD) has moved up nearly five-fold from its 52-week lows. One trader is betting shares will continue to rise through the end of the year. That’s based on the January 2024 $11 calls. With 172 days until expiration, 6,902 contracts traded compared to a prior open interest of 127, for a 54-fold rise in volume on the trade. The buyer of the calls paid $2.80. Shares recently traded for just under $10, so the stock ...
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Caution May Lead to a Buying Opportunity for a Leading Company

Earnings season is in full swing. And investors can once again see good companies falter on less-than-perfect quarterly news. For investors looking beyond the quarterly sprint, however, it may open up some reasonable buying opportunities. That’s true for industry-leading firms. They tend to have higher expectations, and any market disappointment could lead to a buy, even if it’s just a slight discount to where a company would otherwise trade. One great company that often trades at a premium is Visa (V). The ...
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Insider Activity Report: B. Riley Financial (RILY)

Bryant Riley, Co-CEO and major holder at B. Riley Financial (RILY), recently added 72,727 shares. The buy increased his stake by 1 percent, and came to a total cost just shy of $4 million. He was joined by the other CEO, who bought 5,000 shares, at a cost of $275,000. A company director also bought 5,000 shares around the same time. This adds to a number of insider buys over the past year. Overall, insiders own 49.3 percent of the company. The ...
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Unusual Options Activity: The Walt Disney Company (DIS)

Media giant The Walt Disney Company (DIS) has been declining this year, amid dropping theme park attendance and a strike impacting production in Hollywood. One trader sees a further decline in the weeks ahead. That’s based on the August $82 puts. With 21 days until expiration, 4,679 contracts traded compared to a prior open interest of 156, for a 30-fold rise in volume on the trade. The buyer of the puts paid $1.40 to make the bearish bet. Disney shares last went ...
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This Industry Leader Just Knocked Out a Major Uncertainty

Companies are impacted by any number of uncertainties. Investors who wait for completely clear skies often miss out on the opportunity. But buying when things are starting to turn around can offer the best returns relative to the risk. That’s especially true when buying shares of industry leaders. Taking advantage of a short-term fear can be the best way to get the optimal price for a company’s shares. The most recent industry leader getting a big uncertainty off the table is United ...
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Insider Activity Report: Lennar (LEN)

Amy Banse, a director at Lennar (LEN), recently bought 790 shares. The buy increased her stake by 12 percent, and came to a total cost of $99,872. The buy comes a month after she picked up 165 shares, paying just over $20,000 to do so. Over the past two years, a few company officers have been sellers of shares, including a few officers at the VP level who sold over $1 million in a single transaction. Overall, company insiders own ...
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Unusual Options Activity: General Motors (GM)

Automobile manufacturer General Motors (GM) has been rangebound over the past year, and shares appear to be trending down once again. One trader is betting shares will further decline from here in the coming weeks. That’s based on the August 18 $35.50 puts. With 22 days until expiration, 5,802 contracts traded compared to a prior open interest of 129, for a 45-fold rise in volume on the trade. The buyer of the puts paid $0.31 to make the bearish bet. Shares recently ...
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There’s Always a Value Play in a Growth Trend

This year’s market returns have been heavily driven by companies working on artificial intelligence (AI). That includes big tech companies in the hardware and software space, as well as smaller companies with a hyperfocus on the new technology. While that trend is playing out, the market has picked the top players in the space, even with dozens of companies working on the trend. Investors who buy into these lesser-liked stocks can benefit from the long-term trend of AI, while also getting ...
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