Trading Tips Blog

Bet on railroad firm getting back to 52-week high.
The February 2020 $77.50 call options on
CSX Corp. (CSX) saw 2,000 contracts trade, an 18-fold increase over the prior open interest of 114. With shares of the company around $72.21, the option will trade in-the-money if shares rise at least 7.3 percent between now and February. With a price of $2.53 per contract on average, the call buyer will need to see shares trade closer to $80 to make a profit come expiration. As ...
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There are a lot of ways to make money in the market. But even if you find that rare company that can move ten-fold and provide one of the best profits of your lifetime, that will take time.Most investors get impatient. Trading Tips’ Andrew Packer explains why you should be looking at blue-chip bargains ...
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October put buying suggests shares will remain weak. The October 18th $12 put options on
New York Community Bancorp (NYCB) saw an unusual amount of trading volume with over 8,700 contracts trade against a prior open interest of 268, a 32-fold rise in volume. With shares around $13.30, the $12 put option will close in-the-money if shares fall more than 10 percent in the next few weeks, making a sizeable percentage decline. New York Community Bancorp is a regional bank headquartered in New York ...
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CEO makes six-figure buy.
Thomas Vetter, president and CEO at
Cars.com (CARS), picked up 11,000 shares recently, increasing his total share stake to just under 270,000 shares, making for a 4.5 percent increase in his total holdings at the company. At a price of around $9.60 per share, the buy came out to just over $105,000, a sizeable amount considering the company’s $650 million market cap. Cars.com operates a digital marketplace bringing together buyers and sellers of cars. The company has over 5 million ...
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Bet on rally in Brazilian ore play in next month.
The October 4th $12.50 call options in
Vale (VALE) saw heavy trading recently. With shares around $11.80, the option is a bet on shares moving another 6 percent higher in the next 22 trading days before expiration. Over 3,750 contracts on this option traded against a prior open position of 100, making for a 37-fold surge in volume on the trade. With a cost of just $0.16, or $16 per contract, it’s an inexpensive ...
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Multiple insiders buy this week. In the past week, multiple insiders have been buyers at
At Home Group (HOME). That includes a 4,000 share buy by the company’s Chief Development Officer, a 64,000 share buy from the CEO and President, a 6,400 share buy from the COO, a 21,000 share buy from a director, and a 10,000 share buy from the company CFO. These buys have all occurred in the past few days, and represent over $750,000 of purchases from insiders on the ...
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Straddle trade bets on shares moving sideways in next month. October 18th $35 call options on
TAL Education Group (TAL) saw 6,100 contracts trade, on the same day 6,200 $35 put options traded on the same company for the same strike date. The overall type of trade looks like a straddle—where the trader is betting on shares to trade around that price. With a cost of around $2.18 for the put and $1.20 for the call, creating the overall position may have ...
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President & CEO makes a 32,000 share buy.
Cigna Group (CI)
President & CEO David Cordani picked up 32,509 shares recently. The buy increased his stake in shares to over 357,500 shares, and the recent purchase cost just over $5 million. Insiders at the company have largely been sellers year-to-date, albeit in smaller amounts of a few hundred to a few thousand shares at most. And Cordani recently sold 27,000 shares in March at a price just 6 percent higher. Cigna Corporation is ...
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