Trading Tips Blog

Major owner continues to add to stake.Randall Williams, a major holder and director at Enterprise Products Partners (EPD), continues to add to his stake. In February, he has bought in 50,000 share increments on 13 different trading days. That’s a total of 650,000 shares. Each daily buy of this nature costs just over $1.3 million. Insider data shows these buys are dwarfing all prior buys and sells in the past few years at ...
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Trader bets on rally through April.April 3rd call options with a $70 strike on Gilead Sciences (GILD) recently saw an 18-fold rise in volume, going from 117 open contracts to over 2,100 trade hands. The bet, expiring in 38 days, is that shares will head higher. As shares are around $69.50, the bet is almost at-the-money, and could move dollar-for-dollar higher with shares. The buyer of the option paid about $2.71 per contract, so shares would need to get over $72.70 at ...
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March 27th $22 call options on
Barrick Gold (GOLD) saw a 32-fold rise in volume lately, going from 103 open contracts to nearly 3,300. The bet, expiring in 32 days, will move in-the-money if shares rise just over $1.15 from their current price, or about 5.5 percent higher. The buyer of the options also paid about $0.38, or $38 per contract to make the trade. They’ll need to see shares move 7.3 percent higher in the next month. The interest in gold continues after ...
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Chief Legal Officer makes $800,000 buy.
Joseph Podwika, Chief Legal Officer at
Bunge (BG), recently picked up 15,000 shares. The buy came to just over $800,000, and represents a new position for the insider. This marks the first insider trade of the year. In 2019, insiders were active, with one sale of nearly 1,800 shares, but insider buys of over 300,000 shares. Looking back further, insiders were sellers in 2017, at far higher share prices and in smaller amounts. Bunge, a ...
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March 13th 2020 call options with a strike price of $167.50 on
3M (MMM) recently saw a 40-fold rise in volume. From 220 open contracts, over 8,800 traded hands. The bet, expiring in 21 days, is that shares will rally from here. The strike price of the option is about 5.1 percent higher than the current share price. The buyer of the option also paid about $0.98 per contract, so shares would need to clear $168.50 at expiration to profit. Shares of the Read More About This

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Heavily shorted stocks are susceptible to large rallies, even if their fundamentals don’t justify them.
Shares of
Tesla Motors (TSLA) have nearly quadrupled in the past six months. While it may be a bit late to get in at a reasonable price there, the fact remains that the company was controversial. Some saw the move as overdue, and others think the move is crazy. One way to tell that there was this controversy was with the company’s short interest. Stocks with high short interest ...
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Put options expiring in April with a $10 strike price on
Teva Pharmaceuticals (TEVA) saw a nearly-10-fold rise in volume. The option went from under 700 contracts to over 6,800. The bet, expiring in 57 days, is just over 20 percent out-of-the-money, as shares trade just over $12. The buyer of the put option also paid about $0.35 per contract, so shares would need to drop to about $9.65 to profit at expiration. Shares of the pharmaceutical giant have dropped ...
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February 28th $123 call options on
Paypal (PYPL) recently saw a 44-fold rise in volume. Over 7,010 contracts traded against a prior open interest of 161. The bet, expiring in 10 days, is right at-the-money, given a recent share price of $122.99. It should move dollar-for-dollar upward with shares, less the time premium. The buyer of these options paid about $2.00 each, so shares will need to hit $125 by the end of the month to profit. Shares of the alternative payment company have ...
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