Today’s MRKT Call is Presented by Fidelity
Today at 1 pm, Guy Adami and Dan Nathan will go live on YouTube to discuss:
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5% Yields In Play?
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Intel: So Bad It’s Good?
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Trade Management: AXP & NVDA
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Bullish Energy Trade Into Earnings
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SHOW NOTES:
BULLISH INTEL (INTC) TRADE IDEA ~$34.40
Buy May 35/40 Call Spread for ~$1
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Buy to open 1 May 35 call for $1.25
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Sell to open 1 May 40 call at 25 cents
Break-Even on May Expiration:
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Profits of up to 4 between 36 and 40 with max profit above 40
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Losses of up to 1 between 35 and 36 with max loss below 35
Trade Rationale & Management:
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This trade idea risks ~3% of the stock price, has a break-even up of about 4.5%, and has a max gain of 4x the premium at risk if the stock is up 16% on May expiration. If the stock has a fundamental reason to go up it should get back to its breakdown level near $40.
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As always, with long premium directional trade ideas, if the position is worth 50% of what I paid, I will look to cut the loss, and if it is a double, I will look to take half off.
BULLISH ENERGY ETF (XLE) TRADE IDEA ~$95.62
Buy July 96/105 for $3
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Buy to open 1 July 96 call for 3.80
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Sell to open 1 July 105 call at 80 cents
Break-even on July expiration:
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Profits of up to 6 between 99 and 105 with max gain above 105
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Losses of up to 3 between 96 and 99 with max loss of 3 below 96
Trade Rationale & Management:
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This trade idea risks 3% of the etf price and has a two-to-one payout if the etf is up 9% in two months.
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As always, with long premium directional trade ideas, if the position is worth 50% of what I paid, I will look to cut the loss, and if it is a double, I will look to take half off.
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