Most assets that see a rapid rise by going parabolic quickly see a rapid decline.
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| |  Good morning. Most assets that see a rapid rise by going parabolic quickly see a rapid decline. Think gold in 2011, which led to a multi-year bear market. Or think Bitcoin in 2017.
Tesla shares, by rising at a steep angle in the past few months, looked like they were on the cusp of a bigger pullback. Yet with analyst upgrades coming in and more good news for the company, it seems as though the company will set a record for surviving a parabolic move up without a corresponding move down. Shares are now back over $900. Those who bet on Tesla to hit $1,000 earlier in the year may have been early, not wrong.
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| | |  | DOW 29,348.03 | +0.40% | | | | S&P 3,386.15 | +0.47 | | | | NASDAQ 9,817.18 | +0.87% | | | | | *As of market close | | | • | Stocks rallied yesterday, as markets shook off the latest coronavirus fears. | | | • | Oil rose 0.4 percent, closing at $53.49. | | | • | Gold prices rose 0.2 percent, hitting $1,614. | | | • | Cryptocurrencies dropped, with Bitcoin sliding 4.8 percent to $9,667. | | | | | | | |
| | | Two Heavily Shorted Stocks to Consider Trading Now | | | | Shares of Tesla Motors (TSLA) have nearly quadrupled in the past six months. While it may be a bit late to get in at a reasonable price there, the fact remains that the company was controversial.
Some saw the move as overdue, and others think the move is crazy.
One way to tell that there was this controversy was with the company's short interest. Stocks with high short interest can be prone to big moves higher.
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| | Insider Trading Reports: Coty, Inc (COTY) | | | | Giovanni Pieraccioni, a president at Coty Inc (COTY), recently bought 15,203 shares. The buy came to a total of just over $178,000, and increased his stake by 16.3 percent.
This marks the first insider trade at the company in 2020. In 2019, insiders were mostly buyers of shares, with only one insider sale.
In the past three years, insiders have been large and consistent buyers. There has been only one insider sale in that time.
» FULL STORY | | | | |
| | Unusual Options Activity: Teva Pharmaceuticals (TEVA) | | | | Put options expiring in April with a $10 strike price on Teva Pharmaceuticals (TEVA) saw a nearly-10-fold rise in volume. The option went from under 700 contracts to over 6,800.
The bet, expiring in 57 days, is just over 20 percent out-of-the-money, as shares trade just over $12.
The buyer of the put option also paid about $0.35 per contract, so shares would need to drop to about $9.65 to profit at expiration.
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| | | | TOP | | | CXO | 7.581% | | | | TSLA | 6.876% | | | | GRMN | 6.744% | | | | FANG | 6.344% | | | | NVDA | 6.113% | | | | BOTTOM | | | EXR | 6.863% | | | | PSA | 5.592% | | | | VNO | 5.016% | | | | TSN | 2.895% | | | | CAG | 2.868% | | | | |
| | |  | | Companies with large buyback programs are perhaps becoming more discerning in the timing of execution of their buyback programs and maybe delaying repurchases until a more attractive entry point presents itself. This seems plausible to us and at least a partial explanation of the weak data in January. | | - Alliance Bernstein strategist Mark Driver on the timing of corporate share buybacks this year. Buyback programs tend to be halted during earnings, but companies that wait for better prices can buy back more shares with their allotted capital.  | |
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