Trading Tips Blog

Toymaker
Hasbro (HAS) has seen its shares drop nearly one-third over the past year. While the stock has rallied in recent weeks, one trader sees a further decline ahead. That’s based on the August $55 puts. With 93 days until expiration, 4,008 contracts traded compared to a prior open interest of 108, for a 37-fold rise in volume on the trade. The buyer of the puts paid $1.73 to make the bearish bet. Shares recently traded for about $62.50, so the stock ...
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While the stock market has fared well so far this year, investors have been more cautious going into earnings. And most companies have reported a slowdown, but overall it hasn’t been as bad as expected. The wild card is the housing market. Rising interest rates and fewer homeowners looking to sell are creating a tight market, but one where prices could potentially drop. In that environment, homeowners may slow down home maintenance or improvements. That’s the fear going into earnings for big ...
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Gary Mick, CFO at
Six Flags Entertainment (SIX), recently added 5,000 shares. The buy increased his holdings by 6 percent, and came to a total cost of $133,125. This marks the first insider activity at the company so far this year. The CFO was also the most recent buyer with 3 separate buys last December, when the share price was more than 20 percent lower than where it trades today. Overall, company insiders own 0.9 percent of shares. The theme park operator is ...
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Paper materials company
Mercer International (MERC) is down nearly 40 percent over the past year. One trader is betting on a sharp rebound in the coming months. That’s based on the August $12.50 calls. With 94 days until expiration, 22,725 contracts traded compared to a prior open interest of 146, for a 156-fold rise in volume on the trade. The buyer of the calls paid $0.15 to make the bullish bet. Shares recently traded for about $9, so they would need to rise ...
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One of the most powerful long-term investment trends is to invest in a company with a durable competitive advantage. For most companies today, that usually means offering a unique product that’s protected by a copyright or patent. Even though patents are temporary and copyrights won’t last forever, once a brand has been built, it can stand the test of time. And that can lead to higher returns versus investing in generic competitors. In the world of entertainment brands, it’s tough to argue ...
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Wes Morris, a Group President at
Tyson Foods (TSN), recently bought 10,362 shares. The buy increased his holdings by 31 percent, and came to a total cost of $499,431. He was joined by another Group President who bought 2,040 shares, paying just over $99,700 to do so. These buys are the first insider buys at the company over the past two years. Generally, company executives have been slight sellers of shares, usually following the exercise of stock options. Overall, company insiders own ...
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Search engine giant
Google (GOOGL) popped higher last week following an announcement on the company’s investments in artificial intelligence. One trader is betting that shares will come down following the news. That’s based on the July $120 puts. With 67 days until expiration, 16,784 contracts traded compared to a prior open interest of 187, for a 90-fold jump in volume on the trade. The buyer of the puts paid $6.75 to make the bearish bet. Shares recently traded for about $117, so the ...
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2023 has been a strong year for stocks so far. Even if the market flattens out from here, it will still be a much better year than 2022. Those looking to buy today won’t get the extreme lows from last October or December for most stocks. Rather than pile into stocks that have done well, investors may do better by focusing on income stocks rather than growth stocks for the time being. Fortunately, many companies have continued to grow their dividends. One ...
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