One of the best ways to spot potential opportunity is by tracking insider buying, volume spikes, hidden institutional trading and even Congressional buy activity.
To help, we’re going to highlight those opportunities here daily, even on the weekends.
Let’s look at three examples to get started.
Insider Buying: PBF Energy (PBF)
PBF Energy engages in refining and supplying petroleum products.
The company operates in two segments, Refining and Logistics. It produces gasoline, ultra-low-sulfur diesel, heating oil, diesel fuel, jet fuel, lubricants, petrochemicals, and asphalt, as well as unbranded transportation fuels, petrochemical feedstocks, blending components, and other petroleum products from crude oil.
Over the last few days, a 10% owner, picked up $40.8 million worth of PBF. That’s a substantial investment for a stock that just slipped from about $62.50 earlier this year to a recent low of $31.80, which now puts it back to triple-bottom support dating back to December.
An argument can be made that PBF is oversold along with oil.
Volume Spike: BIO-key International (BKYI)
BIO-key International (BKYI), a provider of workforce and customer identity and access management solutions, just saw its volume spike to 138 million, as compared to its daily average volume of 11,261. All on news one of the world’s most respected government defense ministries has awarded BIO-key over $500K in new orders for BIO-key’s biometric user authentication solution pursuant to a three-year purchasing agreement.
Hidden Institutional Trading: Nvidia (NVDA)
Institutions will often try to “hide” options trading in what’s known as options sweeps.
The firms will “hide” large trades from retail investors because they don’t want to move markets or stock unnecessarily. Today, for example, we can see that an institution picked up $1.17 million worth of October 4, 2024 107 call options. That tells us that prior to its October 4 expiration date, the firm believes shares of NVDA will rally above $107 a share.
We can then use that information to either buy an option or simply buy the stock based on the bullishness of the transaction.
