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Insider Trading Reports: Bunge (BG)

Insider Trading Reports: Bunge (BG)

Chief Legal Officer makes $800,000 buy.Joseph Podwika, Chief Legal Officer atBunge (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 global agribusiness company, has seen shares rise just 2 percent in the past year. Shares are down 6.3 percent sin...
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Unusual Options Activity: 3M (MMM)

March 13th 2020 call options with a strike price of $167.50 on3M (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 diversified manufacturing company have been out of favor with the market in the past year, with a 23 percent decline. Shares are down abou...
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Two Heavily Shorted Stocks to Consider Trading Now

Two Heavily Shorted Stocks to Consider Trading Now

1 2Heavily shorted stocks are susceptible to large rallies, even if their fundamentals don’t justify them.Shares ofTesla 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 can be prone to big moves higher. Why does a heavily shorted company suddenly shoot higher? It has to do...
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Unusual Options Activity: Teva Pharmaceuticals (TEVA)

Put options expiring in April with a $10 strike price onTeva 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 32 percent in the past year. The company also reported a loss in the past year and is expected to trade at 5 times forward earning...
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Unusual Options Activity: Paypal (PYPL)

February 28th $123 call options onPaypal (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 risen 27 percent in the last year, beating the overall S&P 500 index by about 5 points.Action to take:...
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An Inexpensive Way to Hedge Your Portfolio From a Market Crash

An Inexpensive Way to Hedge Your Portfolio From a Market Crash

1 2This “Black Swan” Strategy can Protect Your Portfolio With a Minimal StakeMany investors have been waiting for the other shoe to drop in markets since the financial crisis. Some have stayed entirely on the sidelines. They’ve missed out on the greatest stock market rally of all time, fueled by historically low interest rates. Others have kept a lot of cash on the sideline and underperformed. But those who have stayed invested have done well. With the right strategy, they can also hedge cheaply. This “inexpensive market insurance” strategy allows investors today to keep nearly all o...
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Unusual Options Activity: AT&T (T)

December 2020 $37 put options onAT&T (T) recently saw a 10-fold rise in volume. Over 1,600 contracts traded on an option that had a prior open interest of just 156 contracts. The bet expires 304 days. For the bet to move in-the-money, AT&T shares will need to drop about $1.25 from their current price near $38.25. That’s about 3.3 percent. The buyer of the puts also paid about $2.37. Ultimately, shares will need to trade closer to $35 to profit at expiration. That’s a drop of about 8.5 percent. Shares of the media and telecom giant are up 25 percent in the past year, about 4...
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Unusual Options Activity: Nvidia (NVDA)

Unusual Options Activity: Nvidia (NVDA)

Trader bets on continued rally following earnings. June 2020 $340 calls onNvidia (NVDA) saw a 13-fold rise in volume in recent trading. The options went from 100 open contracts to over 1,300. The bet, expiring in 123 days, is that shares will rally about 17.2 percent from their current price near $290. The option buyer paid about $7.80 per share, so shares will need to trade closer to $348 to profit at expiration. That’s a full 20 percent higher. Shares of the company had already jumped following a great earnings report. Shares rose nearly 7 percent on a flat day for the markets. S...
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Unusual Options Activity: Kraft Heinz (KHC)

July 17th put options with a $20 strike onKraft Heinz (KHC) saw a 9-fold rise in volume, going from 112 open trades to just over 1,030. The trade, expiring in 154 days, would move in-the-money if shares dropped about 18 percent from their current price near $27.50. The trader paid $0.23, or $23 per contract, to make the bet, so shares would need to drop to $19.70, well below the stock’s 52-week lows, to profit at expiration. Shares of Kraft Heinz have struggled over the past year amidst slowing sales and various asset write-downs. The company’s latest earnings report on February 13th ...
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Unusual Options Activity: Target (TGT)

February 28th call options with a $121 strike onTarget (TGT) saw a 194-fold explosion in volume, going from a mere 122 open contracts to a volume of over 23,736 contracts. The bet expires in just 15 days. It’s a bet that shares can rise about $3 from their price around $118, or 2.5 percent. The trader buying the options paid $0.98, so shares will really need to close north of $122 at expiration to profit. The company next reports earnings on March 3rd, after this trade expires, so a bump from earnings are unlikely to help there. Shares dropped after the last earnings report, but trade...
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