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, Dan Nathan and Carter Worth will go live on YouTube to discuss:

• Which Way Will Yields Break?

• Walmart Earnings Preview

• Market Breadth Too Hot?

• Industrial Catch-Up Trade

If you enjoyed this episode, make sure to subscribe to the Risk Reversal YouTube Channel:

SHOW NOTES:

Buy June 60/55 Put Spread for ~$1.25

• Buy to open 1 June 60 put for 1.50

• Sell to open 1 June 55 put at 25 cents

Break-even on June expiration:

• Profits of up to 3.75 between 58.75 and 55, max gain of 3.75 at 55 or lower 

• 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:

• 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.

• 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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