Trading Tips Blog

Some companies make their profits because they benefit from a network effect. Simply put, the more users there are on a network, the more valuable that network is. Companies that advertise to that network or support that network benefit from large or growing networks. Investors who buy companies that can benefit from the network effect when they’re trading lower can earn above-average returns over time thanks to this powerful effect. One example of a network is the network of smartphones. Companies that ...
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Industrial conglomerate Honeywell (HON) has been trading in a range over the past year. One trader is betting that shares will trend to the lower end of that range in the coming weeks. That’s based on the May 17 $185 puts. With 23 days until expiration, 10,018 contracts traded compared to a prior open interest of 175, for a 57-fold rise in volume on the trade. The buyer of the puts paid $1.45 to make the bearish bet. Honeywell shares recently traded ...
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Streaming stocks have gone in and out of favor with the market over the past few years. Today, Wall Street analysts have conditioned investors to focus on metrics like total subscriber count. The past year has seen the major streaming platforms find ways to crack down on password sharing. And that’s created more account users. However, that’s not always the best way to maximize earnings. Despite beating on subscriber count and earnings, Netflix (NFLX) saw shares drop off. Part of the reason ...
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Daniel Johnson, a director at Fastenal (FAST), recently added 3,550 shares. The buy increased his stake by 46% and came to a total cost of $229,056. This is the first insider buy at the company since last July, when another director bought 500 shares for just under $29,000. Insiders were bigger buyers in late 2022, when the company CEO, CFO and a number of directors made multiple purchases of shares. Overall, Fastenal insiders own 0.2% of shares. The manufacturer and seller ...
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Semiconductor manufacturer Taiwan Semiconductor (TSM) is up over 50% in the past year, even after shares have pulled back in recent days. One trader sees a further drop ahead in the coming weeks. That’s based on the May 24 $133 puts. With 31 days until expiration, 4,724 contracts traded compared to a prior open interest of 106, for a 45-fold rise in volume on the trade. The buyer of the puts paid $7.90 to make the bearish bet. Taiwan Semiconductor shares recently ...
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With markets now decisively off their most recent highs, uncertainty is rising in markets. We don’t know how long or how deep a market pullback will go. Typically, in the absence of a major crisis, the pullbacks aren’t too bad. That can give investors an opportunity to buy great companies at more reasonable prices. With earnings season underway, investors can also buy a company after reporting a fresh update on their operations. One market winner here could be asset manager Blackstone (BX) ...
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Jeffrey Gould, President and CEO of BRT Apartments (BRT), recently bought 36,912 shares. The buy increased his stake by 1%, and came to a total cost of $625,469. This is Gould’s fifth buy so far in April 2024. Other buys have been for smaller amounts, from 12,200 shares to 24,598 shares. The last insider sale was for 1,250 shares by the company COO, who reduced his position by 2%. Overall, BRT Apartments insiders own 21% of shares. The owner and operator ...
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Offshore oil drilling company Diamond Offshore (DO) is up 13% in the past year, as energy prices have stabilized and started to trend higher. One trader sees a potential pullback through the end of the year. That’s based on the January 2025 $10 puts. With 270 days until expiration, 2,954 contracts traded compared to a prior open interest of 104, for a 28-fold rise in volume on the trade. The buyer of the puts paid $0.75 to make the bearish bet. Diamond ...
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