Unusual Options Activity: Fidelity National Information Services (FIS)

Financial institution technology provider Fidelity National Information Services (FIS) has been cut in half over the past year. One trader sees the potential for a big rally in the coming months. That’s based on the September $70 calls. With 70 days until expiration, 20,825 contracts traded compared to a prior open interest of 512, for a 41-fold rise in volume on the trade. The buyer of the calls paid $0.44 to make the bullish bet. Shares recently traded for about $60, ...
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Buy Ahead of Profitability for Better Returns

When a company is out of favor with the market, it has to prove itself. That can mean successfully undertaking a turnaround, or selling off part of the company. Most of the time, it means streamlining the business and moving towards profitability. For companies that aren’t profitable right now, those that can embrace new trends and grow the business over time are in a great position to surprise investors with positive results later that aren’t expected today. One such potential play today ...
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Insider Activity Report: MediaAlpha (MAX)

White Mountains Insurance Group, a major holder of MediaAlpha (MAX) has acquired an additional 5,916,816 shares. The buy came to over $35 million, and is a 35 percent increase in the insurance company’s position in shares. This marks the first insider buy this year. Some company insiders have been sellers of shares this year, mostly in February at a higher price than where the stock trades today. Overall, company insiders own about 6.7 percent of shares, and institutions such as White ...
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Unusual Option Activity: Activision Blizzard (ATVI)

Video game developer Activision Blizzard (ATVI) is up about 10 percent over the past year, with shares recovering from the drop on news that their potential buyout from Microsoft (MSFT) wouldn’t meet with regulatory scrutiny. One trader sees a further rally ahead. That’s based on the November $100 calls. With 133 days until expiration, 7,013 contracts traded compared to a prior open interest of 214, for a 33-fold rise in volume. The buyer of the calls paid $0.50. Shares recently traded for ...
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This Tech Trend Remains Out of Favor, But May Prove a Speculative Buy Now

Investors have a tech flavor of the year, and it’s artificial intelligence (AI). That’s in contrast to past years, when investors have been enamored with cloud services, cryptocurrency mining, electric vehicles, or any other number of trends. Those trends have staying power too. And since they’re now not the market’s favorite, it’s possible to buy into long-term potential winners at a better price. The best time to buy these tech trends isn’t just when they’re out of favor, but when they’re ...
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Insider Activity Report: CME Group (CME)

William Shepard, a director at CME Group (CME), recently bought 322 shares. The buy came to a total cost just under $58,000, and the buy increased the director’s stake by less than 1 percent. The director has been a regular buyer since last November, with no insider sales in that time. This is his sixth purchase. The last purchase occurred in March, and came to just under $94,000. Insiders were largely sellers before then. Overall, company insiders own 0.5 percent of ...
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Unusual Option Activity: Digital Turbine (APPS)

App software company Digital Turbine (APPS) has lost over half its share price in the past year. One trader sees a rebound in the weeks ahead. That’s based on the August $12.50 calls. With 44 days until expiration, 4,387 contracts traded compared to a prior open interest of 115, for a 38-fold rise in volume on the trade. The buyer of the calls paid $0.30 to make the bullish bet. Shares recently traded for about $9.25, so shares would need to rise ...
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Don’t Overthink the Power of Buying a Strong Brand Out of Favor

When it comes to investing, investors are often their own worst enemy. A falling market may lead to fear, and cause someone to sell when it’s a great time to buy. Likewise, a one-time earnings report may not mean much in the long haul, but it could create a buying opportunity. That’s particularly true with regards to companies that have strong brands. That’s because the long-term power of owning a great brand pays out over time. Investors didn’t like the mixed earnings ...
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