Today’s MRKT Call is Presented by Fidelity
Today at 1 pm, Guy Adami, Dan Nathan and Carter Worth will go live on YouTube to discuss:
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Which Way Will Yields Break?
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Walmart Earnings Preview
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Market Breadth Too Hot?
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Industrial Catch-Up Trade
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SHOW NOTES:
Bearish Walmart (WMT) Trade Idea ~$59.67
Buy June 60/55 Put Spread for ~$1.25
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Buy to open 1 June 60 put for 1.50
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Sell to open 1 June 55 put at 25 cents
Break-even on June expiration:
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Profits of up to 3.75 between 58.75 and 55, max gain of 3.75 at 55 or lower
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Losses of up to 1.25 between 58.75 and 60 with a max loss of 1.25 at 60 or higher
Trade Rationale and Management:
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This trade idea starts in the money by a little less than 1%, has a break-even down of less than 2%, and has a max potential gain of 3x the premium at risk if the stock is down ~8% on June expiration.
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As always with long premium directional trades, I will use a 50% premium stop and look to take half off if a double on the upside.
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