Traders up bearish bets after subscriber miss.Put option trading in streaming giantNetflix (NFLX) saw a surge after reporting earnings Wednesday after the bell. Although the company missed on its total subscriber count for another quarter, and although the company has burned through nearly $10 billion in cash in the past few quarters, shares still managed to gain nearly 3 percent in trading, sending some traders to make bearish bets. One interesting bet is the October 25th $297.50 put. With shares just under $296, the trade is slightly in-the-money ahead of expiration next week, and shou...

Huge bet on monster rally in shares.The June 2020 $57.50 call options onMorgan Stanley (MS) saw a 145-fold explosion in trading volume, from 203 open contracts to over 29,550. With 246 days until expiration, and with shares around $43, shares would need to rally nearly 34 percent for these options to move in-the-money by expiration. At a price of just $0.23, or $23 per contract, it’s an inexpensive bet on the financial giant moving higher, even if shares don’t rally to the strike price. With shares of the company trading under 10 times earnings, and with bank earnings so far looking grea...

Chief Investment Officer buys $4.6 million in shares so far this month.Andrew Feldstein, Chief Investment Officer atAssured Guarantee Limited (AGO), has been buying shares this month in four separate transactions. Each has been for at least 23,000 shares, and in total he has bought 105,700 shares so far this month. The total cost for each transaction has exceeded $1 million, and he has spent over $4.6 million total so far. Other insiders have largely been sellers this year, but in far smaller share amounts. Assured Guaranty offers credit protection and financial guaranty insurance global...

Major fund holder continues to add to stake.iStar Inc. continues to add to its stake inSafehold (SAFE). The fund recently picked up 22,361 shares, shelling out $771,000 and increasing its total stake to 27.2 million shares. That’s the fund’s fourth buy month-to-date, which includes a total of more than 52,000 shares then as well. All told, the fund has been a steep buyer at prices as much as 21 percent higher in the past few months. Safehold specializes in ground leases to help property owners unlock higher values from their real estate holdings with less risk. The company is structured ...

June 2020 put buying indicates potential drop expected.The June 2020 $32.50 put options onAltria Group (MO) saw over 4,000 contracts trade against a prior open interest of 400, making for a 10-fold surge in volume. With shares of the company at $43, shares will need to drop 25 percent in the next 247 days for this option to move in-the-money. With a cost of $1.04, or $104 per contract, the put buyer would need shares to drop to $31.50 before making a profit at expiration. Shares of Altria Group have been out of favor this year, sinking from a high of $66, as tobacco stocks have stumbled ...

Casino operator picks up a bull. The March 2020 $110 call options onWynn Resorts (WYNN) saw over 2,050 contracts trade against a prior open interest of 231, about a 10-fold surge in volume. The bet, which expires in 158 days, is about $1.30 in the money, given the recent share price of $111.30. It should therefore move dollar-for-dollar with shares higher, and could double if shares get to $125.00. If shares get back to their old high of $150, the option would be worth $40, a 220 percent return from the $12.50 option price. Casino operators have been a popular place to trade this y...

Director ups stake by 11 percent.Fred Clark, a director atNational Security Group (NSEC), picked up 9,813 shares recently, increasing his stake by 11 percent and leaving him with 98,723 shares. The buy cost just over $118,000. Insiders have been buyers at the company in the past year, with the last insider sale occurring in 2018. Overall, insiders own 52 percent of outstanding shares, a huge sign that management is aligned with shareholders for growing long-term value. National Security Group is an Alabama-based property & casualty insurance company offering services across the south...