Unusual Options Activity: MPLX LP (MPLX)

Oil and gas midstream company MPLX LP (MPLX) is up 2 percent over the past year, slightly trending higher even as energy prices have been moving lower. One trader sees possible upside in the weeks ahead. That’s based on the June 16 $32 calls. With 42 days until expiration, 59,400 contracts traded compared to a prior open interest of 260, for a staggering 248-fold surge in volume on the trade. The buyer of the calls paid $2.65 to make the bullish ...
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Focus on Long-Term Trends, Not Short-Term Noise

Earnings season can create a tremendous amount of short-term noise. Companies tend to focus on 90-day sprints, rather than the long run, to keep Wall Street happy. But even with that short-term focus, a company can be working towards long-term goals and get hung up in the short run. That’s especially true when a company plays to long-term trends but hasn’t seen the cycle turn favorable for those trends yet. In the tech space, chipmaker Advanced Micro Devices (AMD) took a hit ...
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Insider Trading Report: Markel Corporation (MKL)

Lynne Puckett, a director at Markel Corporation (MKL), recently bought 75 shares. The buy increased her holdings by 8 percent, and came to a total cost of $100,550. Other insiders have been buyers this year, including two directors in February, as well as the company CEO. Insiders have generally been buyers over the past year, but were more likely to be sellers two years ago. Overall, insiders own 2.1 percent of shares. The property and casualty insurance company is up just 2 ...
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Unusual Options Activity: Cardinal Health (CAH)

Healthcare services company Cardinal Health (CAH) has been trending higher in the past few months, and even recently set a new 52-week high. One trader sees shares pulling back by the start of next year. That’s based on the January 2024 $55 puts. With 260 days until expiration, 4,000 contracts traded compared to a prior open interest of 135, for a 30-fold rise in volume on the trade. The buyer of the puts paid $0.68 to make the bearish bet. Shares recently ...
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To Make a Decent Return, Find a Stock That Funds Must Buy

The stock market is an index of a number of companies. And it’s largely weighted by market cap. That index can change all the time, and for any number of reasons. One reason may involve the bankruptcy of an index member company. That’s the case with the S&P 500. First Republic Bank is no more, having been seized by regulators and having its deposits sold off. But it’s the S&P 500, not the S&P 499. The index needs a new member. Traders ...
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Insider Trading Report: Beacon Roofing Supply Inc (BECN)

CD&R Investment Associates, a major holder of Beacon Roofing Supply Inc (BECN), recently added 99,880 shares to their holdings. The buy increased the fund’s stake by 1 percent, and came to a total cost of $6 million. This is the second buy from this fund so far this year. A company President bought 3,850 shares in March, paying just over $250,000 to increase their holdings by 43 percent. Overall, insider buying has been far greater than sales over the past two ...
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Unusual Options Activity: Airbnb (ABNB)

Hotel alternative Airbnb (ABNB) has slid about 22 percent over the past year, but the stock is up over 50 percent from its lows in 2022. One trader sees a further decline ahead for the company. That’s based on the May 12 $115 puts. With 9 days until expiration, 5,369 contracts traded compared to a prior open interest of 112, for a 48-fold rise in volume on the trade. The buyer of the puts paid $2.89 to make the bearish bet. Airbnb ...
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Don’t Overlook “Pick and Shovel” Plays In a Down Market

During a gold rush, most prospectors won’t find much, if any, gold. The real winners are those who supply prospectors with tools that they need, such as picks and shovels. Today, these suppliers don’t even need to provide a physical tool. And they can profit from selling a service with a recurring revenue. That’s where cloud service companies come into play. Spending is slowing, even as it’s grown 19 percent over the past year. Pick and shovel plays in this market are ...
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