Sunday, November 24, 2024
It’s no secret that investors are always looking for the next big thing in the stock market. New tech and renewable energy ideas are particularly popular… which is why you’ll often see companies with little or no revenue trading at high valuations. It’s all about the potential. Of course, that doesn’t mean a company is […]
Options activity has been brisk lately, with traders showing concern over the recent news of COVID-19’s resurgence in several warm-weather states. Cruise line stocks had recovered quite a bit in recent weeks, but could be in trouble again in the coming weeks. It now looks like US cruises won’t resume until September, with data showing […]
One of the more exciting stocks for options traders to trade on is Tesla (TSLA). The electric car and battery company has been volatile basically since its inception. That makes for excellent opportunities for options traders, but also a fair amount of risk. TSLA is essentially a cult stock. There are some investors who love […]
Hertz Global (HTZ) declared bankruptcy and received a delisting notice for its stock last week. Nevertheless, the options activity on HTZ has been through the roof. It seems day traders are enjoying the action with both calls and puts trading briskly. One day last week, over 440,000 options traded in HTZ, mostly in small-lot trades. […]
Despite a global pandemic and worldwide civil unrest, stocks have mostly gone up. The exuberance of investors is impressive, if perhaps misplaced. It certainly remains to be seen if the gains can hold up when the expected second wave of COVID-19 hits in the fall. Despite the large move in stocks (the Nasdaq just hit […]
Stocks rallied sharply last week on better than expected May job numbers. Some of the most beaten down stocks from March saw the biggest gains. Companies like airlines, car manufacturers, and banks saw the most bullish action in the options market. General Electric (GE) is a company that was hit pretty hard in March and […]
Global pandemics and civil unrest don’t seem to impact stock prices, but it remains challenging to find yield in a world of near-zero interest rates. Central banks are doing everything they can to keep global economies from crashing (which is the main reason stock prices are stable), and the result is that yield can’t be […]
After earnings last week, there was quite a bit of options action in Costco (COST). With the pandemic in full swing, COST has performed better than many retail stocks due to the nature of its business. That is, bulk buying is exactly what people were looking for during a prolonged period of being stuck at […]
Trying to understand the stock market in the middle of a pandemic is a challenge for even the most seasoned of traders. It’s not like the investing world has much to compare to. Sure, the Spanish Flu seems roughly like a similar situation—but that was more than 100 years ago. The markets are far larger […]
Looking at options block trades can be a useful way to see what big investors and funds are doing in the options market. Recently, a large trader bought 2 million shares of Bank of America (BAC) while selling 20,000 January calls at the same time. This is likely a covered call trade and suggests that […]
