Tune into MRKT Call @ 1 PM EST with Guy Adami, Dan Nathan and Carter Worth

Today’s MRKT Call is Presented by Fidelity

Today at 1 pm, Guy Adami and Dan Nathan will go live on YouTube to discuss:

• Chart Check on the Markets

• Bullish Trade Idea: Utilities (XLU)

• Bearish Trade Idea: Caterpillar (CAT)

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SHOW NOTES:

XLU ($63.88) Buy June 65/70 Call Spread for ~$1.50

• Buy to open 1 June 65 call for ~$1.85

• Sell to open 1 June 70 call at ~$0.35

Break-Even on June Expiration:

• Profits of up to $3.50 between $66.50 and $70 with a max gain above $70

• Losses of up to $1.50 between $65 and $66.50 with a max loss below $65

Trade Rationale & Management:

• This trade idea risks 2.5% of the ETF price and has a break-even up 4% with a max payout of 5.5% if the ETF is up ~10% in two and a half months

• As with all long premium directional trade ideas, we will cut the loss if the position is half the original premium paid

CAT (~$357.50) Buy to Open 1 May 350 put for ~$11

Break-Even on May Expiration:

• Profits below $339

• Losses of up to $11 between $339 and $350 with max loss above

Trade Rationale and Management:

• This trade idea risks about 3% of the stock price and has a break-even down of ~5%

• The stock is up 21% in the year, doubling the performance of the SPX and up 66% in the last 12 months, compared to the SPX's 31% gains

• If the stock starts to move towards the long put strike, I will look to speed up by selling a lower strike put, creating a put spread.

• May expiration will catch Q1 earnings the last week of April targeting the breakout level from late January

• As with all long premium directional trade ideas, we will cut the loss if the position is half the original premium paid

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