Options trading volumes have hit an all-time high. No surprise: Most of the volume is happening in tech names and fast-moving companies like Tesla Motors.
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| |  Good morning. Options trading volumes have hit an all-time high. No surprise: Most of the volume is happening in tech names and fast-moving companies like Tesla Motors.
But the rate of the increase has changed, with options trading up 27 percent month over month in the past year, and now twice the trailing 12-month average. With many stocks trading at high prices, using options to get a leveraged gain makes sense. But the overall impact of this level of options trading isn't known… and that could lead to some big market swings down the line.
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| | |  | DOW 29,551.42 | +0.94% | | | | S&P 3,379.45 | +0.65% | | | | NASDAQ 9,725.96 | +0.90% | | | | | *As of market close | | | • | Stocks rallied strongly yesterday, on the back of strong earnings. | | | • | Oil rose 3.1 percent, hitting $51.51 per barrel. | | | • | Gold was unchanged, holding at $1,570 per ounce. | | | • | Cryptocurrencies rallied, with Bitcoin rising 1.5 percent to $10,354. | | | | | | | |
| | | Two Warren Buffett Holdings Worth Buying Now | | | | Warren Buffett will go down as the greatest investor in history. His track record, coupled with folksy wisdom about investing, has made it easy for everyday people to get involved in the wealth-creating power of the stock market.
But like everyone else, Buffett is only human. He sometimes gets it wrong.
And sometimes investors get a chance to buy into companies owned by Buffett at a better price—or with better upside potential.
» FULL STORY | | | | |
| | Insider Trading Reports: ExxonMobil (XOM) | | | | Darren Woods, Chairman and CEO at ExxonMobil (XOM), recently bought 2,858 shares of the company. The buy increased his holdings by 0.35 percent. The total buy cost just over $171,000.
This marks the first buy from insiders at the company in the past three years. There have been a number of insider sales, nearly all at substantially higher prices compared to the company's recent trading level.
This insider buy comes after the company reported poor earnings last quarter.
» FULL STORY | | | | |
| | Unusual Options Activity: Target (TGT) | | | | February 28th call options with a $121 strike on Target (TGT) saw a 194-fold explosion in volume, going from a mere 122 open contracts to a volume of over 23,736 contracts.
The bet expires in just 15 days. It's a bet that shares can rise about $3 from their price around $118, or 2.5 percent.
The trader buying the options paid $0.98, so shares will really need to close north of $122 at expiration to profit.
» FULL STORY | | | | |
| | | | TOP | | | IPG | 7.441% | | | | ANTM | 5.748% | | | | GPS | 4.708% | | | | HUM | 4.673% | | | | HES | 4.647% | | | | BOTTOM | | | WU | 7.472% | | | | ABMD | 5.051% | | | | AMCR | 4.558% | | | | CER | 4.425% | | | | TAP | 4.393% | | | | |
| | |  | | I think are lots of troubles coming. There's too much wretched excess. In China, … they love to gamble in stocks. This is really stupid. It's hard to imagine anything dumber than the way the Chinese hold stocks. They're so good at everything else. It shows how hard it is to be rational. | | - Berkshire Hathaway Vice Chairman Charlie Munger on market valuations and the rise of global speculation.  | |
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