Tune in live or watch the replay:
Today at 1 pm, Guy Adami, Dan Nathan and Carter Worth will go live on YouTube to discuss:
- Strategists bull up on 2024
- Fade the homebuilders?
- Nike, Micron, FedEx Earnings
SHOW NOTES:
ITB ($99.69) Buy Feb 99 – 87 put spread for $3
- Buy to open 1 Feb 99 put for $3.70
- Sell to open 1 Feb 87 put at 70 cents
Break-even on Feb expiration:
- Profits of up to 9 between 96 and 87 with max gain below 87
- Losses of up to 3 between 96 and 99 with max loss above 99
Trade Rationale and Management:
- This trade breaks even down less than 4% and has a max potential gain of ~9% if the ETF is down 13% in two months, the amount it has rallied in the last two weeks. Risking 1 to possibly make 3 if the ITB retraces back to technical support between now and Feb expiration.
- As always, with long premium directional trades, I will use a 50% premium stop from the initial purchase price.
