Trading Tips Blog

Bet on shares heading higher. Shares of
Cloudera (CLDR) may be heading higher between now and February, based on a surge of the $5 call options there. On Thursday, over 8,200 of the calls traded against a prior open interest of 123—a 67-fold surge in volume. With shares trading at $5.50, the options are also about 10 percent in-the-money, meaning they should move penny-for-penny, less the decline in the time premium. Cloudera provides data analytic and management products, operating both a subscription and service-based ...
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Bet on surge in shares by September. Shares of
Facebook (FB) may be heading higher—almost 50 percent higher, based on one unusual trade. On Wednesday, over 14,000 of the September 2019 $290 call options on the company traded. With shares at $202, shares would need to rise by 45 percent for them to trade in-the-money in the next 64 days before expiration. With a trade at $0.04, or a mere $4 per contract, any move higher in Facebook shares between now and September could ...
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Major owner increases stake in regional bank.
On Tuesday, James Filler bought just over 2,500 shares of
Century Bancorp (CNBKA). He already owns more than 10 percent of shares. The buy, with a total purchase price of $219,000, increases his total position to 702,919 shares, and represents a 0.36 percent increase in his total holdings. Like many other insiders in recent days, Filler sees solid opportunities in companies where he already has a large stake. Century Bancorp is a bank holding company for Century ...
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Bet on moderate decline by January.
Shares of
Shake Shack (SHAK) have been volatile over the years. At least one trader is betting on a big move in shares again—with a decline in mind. On Tuesday, over 934 contracts traded on the January 2020 $65.00 put options. With shares trading around $74.50, that’s a bet that shares will decline over 13 percent between now and January. Shake Shack currently operates 208 restaurants which it calls Shacks. The company sells burgers, hot dogs, fries, shakes, ...
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Major fund holder bumps up stake.
On Monday, the Abdiel Qualified Master Fund bought 137,515 shares of
Fastly, Inc. (FSLY). With a total cost of nearly $2.8 million, this represented a 3 percent increase in the fund’s stake. The fund, already an owner of more than 10 percent of the company’s shares, has over 4.78 million shares of Fastly in its portfolio. Fastly operates an edge cloud platform for processing, securing, and serving its customer’s applications. The edge cloud is a type of Infrastructure-as-a-Service ...
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Multiple options trades imply shares will decline again. Multiple bets are being made that shares of
Tesla Motors (TSLA) will drop again in the coming weeks. On Monday, over 10,000 contracts traded on an August $60.00 put—a 75 percent discount from where shares trade around $240. Another large trade occurred on the October $215 put, which implies a 10 percent discount between now and October. The August put, trading at $0.04, or $4 per contract, is a very cheap bet likely to expire worthless ...
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CEO makes million-dollar buy.
On Thursday, G-III Apparel Group CEO Morris Goldfarb bought 40,000 shares of his own company. Besides increasing his total stake to over 3.9 million shares, the $26.47 price per share means he spent over $1.05 million picking up shares of the firm. This follows on a previous purchase by Goldfarb back on June 13th. Then, he picked up 40,479 shares, paying $1.02 million. G-III Apparel designs, sources, and markets apparel for men and women. It operates in wholesale and ...
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Large fund owner more than doubles stake.
On Thursday, Cross River Capital Management more than doubled their stake in
Francesca’s Holdings Corporation (FRAN). They did so by buying 341,973 shares of the retailer, shelling out over $625,000. As the trade occurred below market rates, the additional number of shares was achieved off-market, and likely the result of the fund’s prior debt investments in the company converting to shares at a lower rate. Francesca’s is a boutique apparel retail company with 727 boutiques in 47 ...
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