Today’s MRKT Call is Presented by Fidelity

Chart Check on the S&P 500 with Carter Braxton Worth

Dan Nathan and Carter Worth break down the top market headlines and bring you stock market trade ideas for Tuesday, April 16th.

Click here to access the charts mentioned in today’s MRKT Call.

American Express (AXP) Trade Breakdown & Rationale

Buy June 220/180 Put Spread for ~$10

• Buy to open 1 June 220 put for ~11

• Sell to open 1 June 180 put at ~1

Break-even on June expiration

• Profits of up to 30 between 210 and 180

• Losses up to 10 between 210 and 220 with a max loss of 10 above 220

Trade Rationale and Management

• This trade idea risks ~4.5% of the stock price, is already $3 or ~1% in the money, and has a break-even down of ~3.5%. The risk-reward is 3 to 1.

• As always, with long premium directional trades, I will cut my losses if the position is worth 50% of the premium I originally paid and take half off if it doubles.

Trade Updates:

Topic Timecodes:
S&P 500 Technicals (0:00), JNJ & AXP Trade Idea (13:00), SLV Update (26:45), Yields (30:30), XLU Update (36:00) 

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WHAT WE’RE READING

• Fed Chair Powell Says There Has Been a ‘Lack of Further Progress’ This Year on Inflation (CNBC)

• US Yields Spike as Hawkish Powell Puts 5% in Play (Bloomberg)

• Regional Banks Will Dominate Rest of Earnings Season This Week. Here’s What Analysts Expect (CNBC)

• Investment Banking Bounceback Powers Big U.S. Lenders (WSJ)

• UnitedHealth Stock Soars After Earnings Beat Expectations, Despite Cyberattack (WSJ)

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