Trade ideas

Trade ideas

Today’s trade idea for option traders: Kimco Realty Corp. (trade closed)

trade idea for option traders

Yes, because of COVID-19 it was a bad year for REITs. And Kimco Realty was also suffering from a roughly 28% decline. Of course, with around 400 shopping centers getting shut down and consumers increasingly buying online, it’s would be hard to make money in this business. Nevertheless, Kimco could collect around 90% of its October rent and thus, the revenue was down “just” 8% in the third quarter of 2020. And that was maybe the reason Kimco increased its dividend in the fourth quarter, just after the dividend cut in the third quarter. Of course, Kimco is facing a long recovery process now. It’s not only because of the Corona pandemic but also because of the headwinds from the online shopping which is, of course, a strong competitor of retail REITs. Therefore, long term-investors should be cautious with Kimco, too. But for all option traders who are usually short term oriented, there is an opportunity to sell options and collect a premium. So let’s check it out, folks.

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Trade ideas

Today’s trade idea for option traders: Sinclair Broadcast Group (trade closed)

trade idea for option traders

When I introduced the trade from 12th November 2020, it could be closed 14 days later with a profit of $150 – 155$ per option. Today, there is another opportunity for a new options trade on Sinclair Broadcast Group. As the previous trade lies just a couple of weeks ago and there are no new earnings published, we have the same conditions: In spite of the negative earnings announcement in Q3 2020 (an operating loss of $4.18 B) there nevertheless comes a certain momentum upwards which gives to option traders an opportunity for a new trade on Sinclair Broadcast Group. So let’s check it out, folks.

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Trade ideas

Today’s trade idea for options traders: Pure Storage Inc. (trade closed)

 trade idea for option traders

Pure Storage delivers so-called All-Flash-Arrays (AFA) infrastructures and has an excellent reputation in this industry branch. The stock of this company is listed on the exchanges since 2015 and in total, it didn’t perform well. But now, from a point of view of a chart technique, this turns into a short-term opportunity for option traders. From a fundamental point of view, analysts expecting an increasing EPS of $0.26 in 2021 which should support the stock’s price. So let’s check this option trade opportunity, folks.

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Trade ideas

Today’s trade idea for options traders: Wells Fargo (trade closed)

trade idea for option traders

The financial sector has been beaten down in 2020, and Wells Fargo was not an exception at all. In fact, it has probably been hit harder than most banks in the U.S. And this is after already poor performance in its recent years of scandals. The most prominent case I still remember is the account fraud scandal which was made public in 2016. Longtime investor Warren Buffett has also significantly cut his position in the bank. But it’s still one of the largest financial institutions in the U.S. and is very well established, despite its past reputational issues. And as options traders usually look for short-term opportunities, they should take them. Therefore, let’s check this trade idea on Wells Fargo.

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Trade ideas

Today’s trade idea for option traders: Axalta Coating Systems (trade closed)

trade idea for option traders

It’s not the best known stock held by Warren Buffett’s Berkshire Hathaway. Axalta Coating Systems operates in two segments – performance coatings and transportation coatings. The COVID-19 pandemic led to a dramatic slump in industrial activity. Hence, sales alone in Axalta’s performance coatings declined 36% in the second quarter. However, the good news is that its markets seem to be recovering. CEO Michael McGarry referred to “strengthening demand for our automotive original equipment manufacturer and general industrial coatings.”

The stock is up more than 55% in the last six months, and the recent Q3 2020 earnings showed a company in recovery mode. This gives us an opportunity for another trade idea to collect option premium which I will show you in this article, folks.

 

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