Big bet on natural gas producer during summer slump. Shares ofChesapeake Energy (CHK) could move up to 34 percent higher between now and November. That’s based on a surge in volume on the November $2.50 calls, and a current price around $1.86. On Tuesday, over 160,000 of these options traded, a 58-fold surge in volume. That’s a relatively quick amount of time for such a move, but it’s not unheard of in the commodity space. Plus, by November, a colder-than-expected winter could move natural gas prices higher, which would also benefit CHK shares.Action to take: With the option ...

Insiders have never sold shares in the past three years. While names related to transportation and trade haven’t looked attractive in the midst of slowing global trade and tariff fears, insiders see an opportunity inPitney Bowes (PBI). On June 30th, Executive Vice President Jason Dies bought 1,500 shares, increasing his stake in the company by 25 percent. Insiders have been net buyers, with no insider sales at the company, for nearly three years. Pitney Bowes provides mail and shipping fulfillment products and services, including sortation services for companies that need to qua...

Major fund holder adds 4.6 million shares. CD&R Investment Associates, already a 10 percent owner, has been adding to its stake inBeacon Roofing Supply (BECN). Typically, when large investment funds increase their stake, it’s because they see the same value as other insiders. However, funds can also acquire board seats and otherwise push a company to make changes it might not otherwise—to the benefit of shareholders. On June 28th, the fund bought 4.6 million shares, a $158 million commitment. That increased its total stake to 10.5 million shares, a 78 percent increase over its...

Company CEO makes third buy in the past five weeks. Insiders continue to be buyers in the energy sector, even after oil prices have started moving higher. The latest example? Natural gas pipeline companyAltus Midstream Company (ALTM). On Thursday, CEO Clay Bretches picked up 15,000 shares of the company, paying nearly $55,000. It also increased his total stake by over 37 percent, a huge additional buy in. This follows up on buys of 20,000 shares on June 14th, and 20,000 shares back on May 21st. Altus is in the natural gas space, with a focus on gathering, processing and trans...

Big trade bets shares will rally in July.Shares ofAbbVie (ABBV) dropped nearly 15 percent on news that it was planning to acquire Botox maker Allergan. One trader is betting that the move was overdone. On Friday, over 3,200 contracts traded on the August 2, 2019 $80 call option. With 35 days left to expire and AbbVie prices just under $72, the option is a bet on an 11 percent rally in shares in the month of July. That kind of percentage move in a big-name company may seem like a stretch, but given how shares of AbbVie dropped heavily on the merger news, this option could easily make a bi...

Trader bets on more downside for tobacco giant. Tobacco companies have had a rough year, amidst long-term sales declines and a decision to pass on major investments in the growing cannabis industry. One trader sees some more downside, with a large put option trade onAltria (MO). On Thursday, over 9,500 contracts of the July 12th $49 put options traded, a 57-fold increase in volume on the option. This option, with shares at $48, is already in-the-money. So while it expires in 15 days, the option can be exercised as long as shares are under the $49 strike price. Any big down da...

Two insiders buy over $600,000 in shares.Insiders still remain incredibly bullish across the biotech and pharmaceutical space. On Wednesday, two insiders bought shares atBiohaven Pharmaceutical Holding Company (BHVN). CEO Vlad Coric bought 5,000 shares, shelling out just over $201,000. And director John Childs bought 10,000 shares, paying just over $403,000. This marks the first insider buys at the company in over two years, following insider sales last year in the $50-60 range. With shares in the low $40’s, the insider buys look like a response to the steep selloff in shares since th...

Traders bet on drop following big earnings beat.Shares ofMicron Technology (MU) surged over 14 percent on Wednesday thanks to a massive earnings beat. But some traders think the stock has rallied too much. On Wednesday, a large number of contracts with unusual options activity centered around put options on Micron, with many expiring on Friday, just two trading days away. One further out, the August 2nd $32 put options, has over a month to play out. This option had over 1,600 contracts on Wednesday. With shares of Micron hitting $37.50, the $32 puts imply a 15 percent pullback, essent...

Fund manager makes big buy after merger announcement in the sector. Money manager Keith Meister continues to be bullish atMGM Resorts International (MGM), the casino firm where he already owns 20 million shares and has a board seat as a director. On Tuesday, Meister picked up 380,651 additional shares, at a cost of about $10.59 million. This news comes after a big announced merger in the gaming space between Eldorado Resorts and Casears Entertainment. Typically, casinos can be a bit volatile, as many folks scale back plans to gamble during times of economic stress. And while gam...