Option Traders Continued Trend of Bullish Trades on ‘Reopen’ Companies

Option Traders Continued Trend of Bullish Trades on ‘Reopen’ Companies

If you’ve been following unusual option activity over the past two months, there has been a lot of activity on companies that benefit from reopening. One of the most targeted areas have been casinos like MGM Resorts International (NYSE: MGM) and Caesars Entertainment Inc (NASDAQ: CZR), but it has also extended to other areas of travel and leisure. On Thursday, it was Melco Resorts & Entertainment Ltd (NASDAQ: MLCO) turn as option traders are looking for its price to move. Melco is a developer, owner and operator of integrated resort facilities in Asia and Europe. One of their proper...
More
6 Undervalued Income Stocks for an Overvalued Market

6 Undervalued Income Stocks for an Overvalued Market

The S&P 500 recently tested its 50-day moving average, but does that mean valuations for the index have normalized? Unfortunately, it hasn’t even begun to do so. Looking at the Shiller P/E ratio for the S&P 500, the market has only been more overvalued one other time and that was during the 2000 tech bubble. The market may only be in a quiet period before significant volatility returns. In this climate, identifying value companies that pay dividends may be a shelter from the storm that’s still brewing. The Shiller P/E Ratio is a price-to-earnings ration for the S&P 500 that ...
More
Avis Budget Group Sees String of Insider Purchases by 10% Owner

Avis Budget Group Sees String of Insider Purchases by 10% Owner

It may be hard to appreciate a rental car company as an investor when travel is so impacted, and Hertz declared bankruptcy. However, not all companies are the same and some are underappreciated and undervalued. Avis Budget Group Inc (NASDAQ: CAR) may be one of those companies as the stock continues to trend higher. One big indication is string of insider buying by 10% owner SRS Investment Management. Avis has been a solid performer since its March lows and is currently testing its June 8 high near $36.50. In a quarterly report provided by Mittleman Global Value Equity Fund, the investme...
More
After the Selling, Option Traders are Looking for a Smoke in Altria Group

After the Selling, Option Traders are Looking for a Smoke in Altria Group

It can be startling when the volatility of the market rears its ugly head when it’s been gone for a while. This past week may be a reminder that it’s not always an up day and the down days can see gains diminish quickly. As stocks look to find their footing, it will be interesting to see which companies begin to lead. On Wednesday, the increased bullish option activity in Altria Group Inc (NYSE: MO) may be an indication that traders are to take a break. Altria is a consumer staples stock that manufactures and sells cigarettes, smokeless products and wine. The company currently pays a 7....
More
Invesco CEO Buys Shares as Price Looks to Break Out

Invesco CEO Buys Shares as Price Looks to Break Out

For the past three months, the share price of Invesco Ltd (NYSE: IVZ) has been trading in a range between $10 and $11.60. The price just made another run at the resistance last week as volume surged but faded from the high yesterday. As the price was beginning its run, the president and CEO Martin Flanagan and another insider began buying shares. The insider buys may be an indication that they expect the price to move higher. Invesco is a $5.23 billion investment management company. With 459.17 million shares outstanding, institutions own 48.58% of the shares. Insiders own very little o...
More
Gold Tests Key Support as Bullish Option Activity Increases

Gold Tests Key Support as Bullish Option Activity Increases

Gold has a history of outperforming during a market correction. The recent selling period is another example of this historical trend. Part of the reason is that gold’s selling is primarily a result of dollar strength and not the loss of value that stocks experience. On Tuesday, gold futures finished 0.17% higher while the S&P 500 finished 2.78% lower. As SPDR Gold Trust ETF (NYSEARCA: GLD) share price cozies up to its 50-day moving, the option market is looking more bullish. Since the selloff in March, the price has been bouncing off the 50-day simple moving average following its c...
More
6 Blue Chip Stocks that are Testing Their 50-day Moving Average

6 Blue Chip Stocks that are Testing Their 50-day Moving Average

As was expected, the selling spilled over into this week. Many stocks have fallen from their highs and are in the process of testing their moving averages. A key moving average for institutional investors is the 5-day simple moving average. The area around the average often triggers investors to buy a company. Here is a list of six blue chip companies that have fallen to their 5-day moving averages and how to use options to trade it. A “blue-chip” company is typically an older and established company with a market cap in the billions. Frequently, these companies have a history of consis...
More
Franchise Group has CEO and 10% Owner Add Shares as Key Price Level is Tested

Franchise Group has CEO and 10% Owner Add Shares as Key Price Level is Tested

Franchise Group Inc (NASDAQ: FRG) has been testing its $27 resistance again last week as the it has several times over the past year. Before the price made a run at that level last week, there was insider buying by the CEO and 10% owner Brian Randall Kahn. The buying is an indication of an expected rise in price and a potential breakout. Franchise Group operates a retailer, franchisor operator, and acquirer of franchised and franchisable businesses. The company’s insiders directly own 1.05% of the company’s shares. Mathew Avril is the largest direct owner with 107,748 shares. Institutio...
More
5 Leveraged Inverse ETFs for the Bear’s Return

5 Leveraged Inverse ETFs for the Bear’s Return

It can be difficult for inexperienced investors in a bearish climate if they don’t know options, futures, or have never shorted stock. The motivation behind creating inverse ETF products was to allow investors to simply buy shares and make money in the market sells off. In addition to making money as the market declines, companies have been able to add leverage that is two to three times the daily movement of the underlying. Here are five inverse and leveraged ETFs to consider using in a sell-off. While the advantages of buying a fund that moves inverse to the market isn’t exactly a dif...
More
Option Traders Looking at Retail with Bullish Activity on Kohl’s

Option Traders Looking at Retail with Bullish Activity on Kohl’s

Normally, a selloff in the market would claim retail companies as one of its victims. However, the selling on Thursday and Friday of last week didn’t have the same breadth of selling that the market experienced on June 11. On Friday, the option market bulls looked toward Kohl's Corporation (NYSE: KSS) as a surge in bullish option activity helped lift the stock price by 2.44% Kohl’s is joining a handful of other companies that are being added to the. S&P MidCap 400 index. The company is being replaced in the S&P 500 by Etsy Inc. (NASD:ETSY), Teradyne Inc. (NASD:TER), and Catalen...
More