Trading Tips Blog

Cybersecurity company Rapid7 (RPD) has had a 30 percent drop over the past year. One trader sees a strong rebound in the coming weeks. That’s based on the July $60 calls. With 40 days until expiration, 10,579 contracts traded compared to a prior open interest of 111, for a 95-fold rise in volume on the trade. The buyer of the calls paid $0.95 to make the bullish bet. Shares recently traded just over $47, so they would need to rise $13, or ...
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While the stock market has rewarded companies moving into the artificial intelligence (AI) space this year, the ride hasn’t been a smooth one. That’s actually a good thing for investors. Pullbacks create buying opportunities. And the important thing for investors is to buy smaller AI companies that can see big growth – and share price appreciation – over time. That means looking for companies that have small market caps – under $100 billion – which takes a lot of household tech ...
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Bruce Thorn, President and CEO at Big Lots (BIG), recently bought 51,000 shares. The buy increased his holdings by 8 percent, and came to a total cost just over $247,000. This marks the only insider buy at the company over the past two years. One company Executive Bice President was a regular seller of shares in 2021 and into early 2022, but insiders have been inactive for the past 14 months. Overall, company insiders own 3.3 percent of shares. The discount retailer ...
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Chemical manufacturer Dow (DOW) is down over 25 percent in the past year. One trader sees a rebound ahead in the coming weeks. That’s based on the June 30th $53 calls. With 24 days until expiration, 18,807 contracts traded compared to a prior open interest of 111, for a 169-fold jump in volume on the trade. The buyer of the calls paid $0.70 to make the bullish bet. Shares recently traded for just over $51.50, so the stock would need to rise ...
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Economic data remains confusing. While the economy is slowing by several measures, we’re still seeing signs of a strong economy, such as the labor market. One trend that’s becoming more clear is that spending is declining on goods, but not necessarily on services. That’s leading to a drop in retail-related stocks. And while a slowing economy will mean a further slowdown in the sale of goods, it won’t drop to zero. Consumers still need to consume, if only for basics such as ...
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Bernard Kim, CEO at Match Group (MTCH), recently bought 31,439 shares. The buy increased his stake by 184 percent, and came to a total cost just over $1.08 million. The last insider buy also came from the CEO last August, with a 16,000 share pickup. Otherwise, one company executive sold following the exercise of stock options, and a company director sold a small position back in March. Overall, insiders own about 0.7 percent of shares. The dating product company has seen shares ...
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Semiconductor company Micron Technology (MU) has seen shares rally 40 percent from their December lows, and are on track to erase the last 10 percent drop they’ve seen over the past year. One trader is betting on such a continued move higher. That’s based on the August $72.50 calls. With 74 days until expiration, 8,564 contracts traded compared to a prior open interest of 184, for a 47-fold rise in volume on the trade. The buyer of the calls paid $3.95. Shares ...
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Investors looking to consistently outperform the market should follow market rotation. That simply means avoiding sectors that have recently performed well, instead opting to buy sectors that have been out of favor. For the month of May, tech stocks dominated. Software-related tech plays saw a nearly 10 percent rise. On the other end of the spectrum, the energy sector was the loser, with about a 10 percent decline. Since energy prices tend to fluctuate over time, investors interested in the space should ...
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