1 2 With the market at all-time highs and so many stocks overbought, it makes you want to identify the less-loved companies that are showing potential. The concept is finding companies that are considered oversold but also have a reasonable fundamental reason for moving higher. The following five companies are significantly oversold in the near-term but have stable earnings expectations and room to run higher. The companies listed are trading at or below their four ATR Keltner Channel, which is achieved when the price has a lengthy retracement. In order for the price to reach this lev...

It’s been an incredible run for Plug Power Inc (NASDAQ: PLUG) as the price has gone from $4 to over $14 in a two-month period. When this happens, it makes you wonder when the sellers will start to materialize, and the trend will correct. Corrections come in different forms and the previous correction in July saw extraordinarily little pullback. As the price wavered on Friday, option bears began to buy puts looking for more downside. After trading mostly between $3 and $4.75 from November through May, the price finally broke out at the beginning of June. The breakout coincided with the i...

Red Rock Resorts Inc (NASDAQ: RRR) CEO and 10% owner Frank Fertitta has been busy buying shares of his company in recent weeks. This is the first purchases made in nearly a year as the stock is moving higher. While his purchases are significant, he’s also not the only one in the company buying large blocks of the company’s stock. Red Rock closed 4.53% higher on Thursday as the stock has advanced in 13 of the last 14 days and the price rallied form $11 to over $17. Yesterday’s movement saw the price close above the June 5 high and may be an indication that the price may retest the Februa...

Coca-Cola Co (NYSE: KO) has been stumbling as the share price tests the $49 resistance. It’s a price level that Coca-Cola has struggled with in the past as the price typically falls back to $44 since its April high. As the price broke lower on Wednesday, pressuring the Dow, option traders jumped in on Thursday to place bearish trades indicating a near-term move lower back to the support. Since April 7, the price of KO has struggled to gain any ground. The price has tested the $49 resistance on four separate occasions and each time retraced to the $43.50 support. The price recently retes...

1 2 Every investor should have a funnel or a process that they use to narrow down the universe of tradable stocks to a select set of companies that they would be inclined to trade. One approach is to look at the so-called “smart money.” These large investors have a lot of money that they manage, and option activity is one place to look for where the money is going. The following six companies saw significant bullish option activity in the past week. Options are derivative products used on an underlying stock, ETF, index, or futures product. Options provide the option buyers with the a...

As mortgage interest rates are testing all-time lows, homebuilder optimism has surged to the highest level since 1998. The recent National Association of Home Builders/Wells Fargo Market Index beat analyst estimates and points to extreme optimism in the midst of a recession. As far as the options market is concerned, there was a large put option trade that is looking for the  SPDR S&P Homebuilders ETF (NYSEARCA: XHB) to trade significantly lower by the start of 2021. According to bankrate.com, the current 30-year mortgage rate is 3.06%. Pretty phenomenal considering how many mortgag...

Over the past several weeks, there has been a significant insider selling in Netflix Inc (NASDAQ: NFLX). The breadth of selling has included some high-profile names, one of which is the Chief Content Officer. As the price has sputtered and viewers are becoming more indecisive, the company is preparing the launch of a “shuffle button.” As insiders are picking up the pace of profit-taking, it may make sense for investors to shuffle their ownership of Netflix as its credits may be starting to come into view. NFLX is testing a new “shuffle play” feature for its video streaming platform. The...

1 2 Many investors find the cost and convenience of ETF investing the best way to manage their money. One of the advantages of ETF is the fact that they can be traded or have conditional orders placed to help manage risk. Many ETFs have a robust option market with plenty of liquidity. However, many ETFs are dominated with many of the same stocks or other holdings. Here are five ETFs that can be used to provide diversification, income, and opportunity for appreciation.Growth & Income ETF #1: Vanguard Dividend Appreciation ETF (NASDAQ: VXUS) VXUS is a passively managed foreign large...

After the large drop in silver on August 11, the price has been tentatively moving higher. Tuesday was no exception as the price gapped on the open and faded back into the previous day’s range. While the movement looks to consolidate gains, the timing of a potential bullish breakout is difficult to predict. The options market on the iShares Silver Trust ETF (NYSEARCA: SLV) saw some rather bullish trading being made as the implied volatility prices another big breakout higher by the fall. Price movement becomes parabolic when the angle of the advance steepens dramatically, and the volume...

It was 2013 and billionaire investors and rivals Bill Ackman and Carl Icahn began to get into it over Herbalife Nutrition Ltd (NYSE: HLF). Icahn has largely been a buyer of HLF since Ackman announced his sizable short position. With his last and only other sale coming near the 2018 peak, he’s back to selling again and is liquidating an even larger amount of his holdings this time. This may be the strongest signal since 2013 to sell Herbalife. If you were watching financial media at all in 2013 you heard about the airing of grievances by Carl Icahn and Bill Ackman. Icahn ripped Ackman pu...